A director of a Wolverhampton based Financial Advisory Company (’the company’) has been banned for eight years following unregulated overseas investments which resulted in substantial losses for the company’s clients.
Tim Thompson of Kangs Solicitors outlines the circumstances.
The Circumstances | Kangs Director Disqualification Solicitors
- The company was authorised to provide Self Invested Personal Pensions Schemes advice.
Enquiries conducted after the company entered Creditors Voluntary Liquidation in 2018 revealed that:
- around £8.3m of client money had been invested in unregulated overseas investments without the knowledge of its clients.
- the director had paid himself more than £247,000 through the company which amount was neither disclosed to nor agreed by the company’s clients.
- As a result of the liquidation, Director Disqualification Proceedings resulted in the director signing an Undertaking which resulted in him being disqualified as a director for eight years.
Insolvency Service Comment | Kangs Insolvency Proceedings Solicitors
Dave Elliott, Chief Investigator for the Insolvency Service, commented that:
‘[the company’) was entrusted with millions of pounds to invest in legitimate pension investment schemes. The Wolverhampton director, however, totally disregarded his clients’ interests and caused substantial losses when he invested eight million in unsuitable products.
Eight years is a significant ban and removing [the director] from the corporate arena will protect investors from further harm due to his poor investment advice.’
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