Warning Notice
On , the Financial Conduct Authority issued a Warning Notice to Automotive Capital Management Limited
Warning Notice Statement 22/3
Individual A
1. The Financial Conduct Authority (the FCA) gave a warning notice on 10 August
2022 to an individual (Individual A) working as a director and independent
financial adviser at an advisory firm (Firm A) whilst an approved person proposing
to take action in respect of the conduct summarised in this statement.
2. The following is a summary of the reasons why the FCA gave Individual A a
warning notice:
•
The FCA considers that Individual A breached Principle 1 of the FCA’s
Statements of Principle for Approved Persons when carrying out their
controlled functions.
3. In particular, the FCA considers that:
•
Individual A dishonestly arranged to receive, and for other advisers at
Firm A to receive, prohibited commission payments derived from
investments made by Firm A’s customers. These payments were funnelled
via companies connected to the individual and intentionally designed to
disguise their true origins.
•
Individual A dishonestly established, maintained and concealed a conflict
of interest that was at the heart of Firm A’s business model so that he,
and the other advisers, could receive the prohibited commission
payments.
•
Individual A dishonestly advised Firm A’s customers to invest in high-risk,
illiquid investments and made misleading statements in application forms
about the customers.
•
Individual A dishonestly advised and persuaded Firm A’s customers to
transfer out of the British Steel Pension Scheme despite knowing it was
IMPORTANT: A warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give
certain statutory notices described as within its scope by the FCA’s Handbook.
If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.
If either the RDC or the Upper Tribunal decides that no further action should
be taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.
2 of 3
not in their best interests and created suitability reports containing
contrary advice to remain in the scheme in order to disguise the true
nature of the advice.
•
Individual A dishonestly withheld the existence of exit fees from Firm A’s
customers and misled customers about the existence of the exit fees.
•
Individual A, in their capacity as Firm A’s director, dishonestly allowed two
people to provide pensions advice to Firm A’s customers without being
approved persons, recklessly disregarding the risk to those customers’
interests, and misled the FCA about it.
•
Individual A also misled the Authority about the prohibited commission
payments whilst an approved person.
4. The FCA considers that Individual A’s conduct amounts to a failure to comply with
regulatory requirements aimed at ensuring that customers received suitable
advice and were treated fairly.
3 of 3
Individual B
1. The Financial Conduct Authority (the FCA) gave a warning notice on 10 August
2022 to an individual (Individual B) working as an independent financial adviser
at Firm A, and as a director and independent financial advisor at a second
advisory firm (Firm B) whilst an approved person proposing to take action in
respect of the conduct summarised in this statement.
2. The following is a summary of the reasons why the FCA gave Individual B a
warning notice:
•
The FCA considers that Individual B breached Principle 1 of the FCA’s
Statements of Principle for Approved Persons when carrying out their
controlled functions.
3. In particular, the FCA considers that:
•
Individual B dishonestly received prohibited commissions payments
derived from investments made by Firm A’s customers.
•
Individual B recklessly ignored the risks of high-risk, illiquid investments
when advising Firm A’s customers.
•
Individual B dishonestly sought to mislead the Authority about Firm B’s
role in arranging and/or advising customers to invest in high-risk
investments.
•
Individual B recklessly allowed Firm B to receive ongoing service fees and
trail commission from Firm B’s customers without their knowledge,
consent or actually providing any ongoing service.
4. The FCA considers that Individual B’s conduct amounts to a failure to comply with
regulatory requirements aimed at ensuring that customers received suitable
advice and were treated fairly.
IMPORTANT: A warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give
certain statutory notices described as within its scope by the FCA’s Handbook.
If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.
If either the RDC or the Upper Tribunal decides that no further action should
be taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.
Individual A
1. The Financial Conduct Authority (the FCA) gave a warning notice on 10 August
2022 to an individual (Individual A) working as a director and independent
financial adviser at an advisory firm (Firm A) whilst an approved person proposing
to take action in respect of the conduct summarised in this statement.
2. The following is a summary of the reasons why the FCA gave Individual A a
warning notice:
•
The FCA considers that Individual A breached Principle 1 of the FCA’s
Statements of Principle for Approved Persons when carrying out their
controlled functions.
3. In particular, the FCA considers that:
•
Individual A dishonestly arranged to receive, and for other advisers at
Firm A to receive, prohibited commission payments derived from
investments made by Firm A’s customers. These payments were funnelled
via companies connected to the individual and intentionally designed to
disguise their true origins.
•
Individual A dishonestly established, maintained and concealed a conflict
of interest that was at the heart of Firm A’s business model so that he,
and the other advisers, could receive the prohibited commission
payments.
•
Individual A dishonestly advised Firm A’s customers to invest in high-risk,
illiquid investments and made misleading statements in application forms
about the customers.
•
Individual A dishonestly advised and persuaded Firm A’s customers to
transfer out of the British Steel Pension Scheme despite knowing it was
IMPORTANT: A warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give
certain statutory notices described as within its scope by the FCA’s Handbook.
If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.
If either the RDC or the Upper Tribunal decides that no further action should
be taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.
2 of 3
not in their best interests and created suitability reports containing
contrary advice to remain in the scheme in order to disguise the true
nature of the advice.
•
Individual A dishonestly withheld the existence of exit fees from Firm A’s
customers and misled customers about the existence of the exit fees.
•
Individual A, in their capacity as Firm A’s director, dishonestly allowed two
people to provide pensions advice to Firm A’s customers without being
approved persons, recklessly disregarding the risk to those customers’
interests, and misled the FCA about it.
•
Individual A also misled the Authority about the prohibited commission
payments whilst an approved person.
4. The FCA considers that Individual A’s conduct amounts to a failure to comply with
regulatory requirements aimed at ensuring that customers received suitable
advice and were treated fairly.
3 of 3
Individual B
1. The Financial Conduct Authority (the FCA) gave a warning notice on 10 August
2022 to an individual (Individual B) working as an independent financial adviser
at Firm A, and as a director and independent financial advisor at a second
advisory firm (Firm B) whilst an approved person proposing to take action in
respect of the conduct summarised in this statement.
2. The following is a summary of the reasons why the FCA gave Individual B a
warning notice:
•
The FCA considers that Individual B breached Principle 1 of the FCA’s
Statements of Principle for Approved Persons when carrying out their
controlled functions.
3. In particular, the FCA considers that:
•
Individual B dishonestly received prohibited commissions payments
derived from investments made by Firm A’s customers.
•
Individual B recklessly ignored the risks of high-risk, illiquid investments
when advising Firm A’s customers.
•
Individual B dishonestly sought to mislead the Authority about Firm B’s
role in arranging and/or advising customers to invest in high-risk
investments.
•
Individual B recklessly allowed Firm B to receive ongoing service fees and
trail commission from Firm B’s customers without their knowledge,
consent or actually providing any ongoing service.
4. The FCA considers that Individual B’s conduct amounts to a failure to comply with
regulatory requirements aimed at ensuring that customers received suitable
advice and were treated fairly.
IMPORTANT: A warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give
certain statutory notices described as within its scope by the FCA’s Handbook.
If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.
If either the RDC or the Upper Tribunal decides that no further action should
be taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.