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Banned IFAs imprisoned for giving unauthorised advice to clients
| Published: | 23 Nov at 6 PM |
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As concerns about the quality of investment advice being given by FAs in expat destinations rise, the UK legal system has hit hard on two financial advisors caught giving unauthorised advice.
John Cooper and Gary Hexley were both found guilty and sentenced to 9 months and 2 years’ imprisonment respectively. A financial advisory company, Birmingham-based Exclusive Asset Management, was fined £60,000 for allowing their employee Hexley to give poor investment advice.
Following complaints from clients, the FSA, now the FCA, investigated the pair and found that Hexley had already been banned from giving investment advice. He had lied to his clients about the Metatron Global Fund, a high-risk Mauritius-based start-up company with no track record paying high commission rates to FAs.
Hexley had been paid some £74,000 in commissions, and was found guilty of giving unauthorised advice and on five counts of dishonesty. Cooper, who had received £6,000 in commissions, was found guilty of concealing Hexley’s non-status as an FA and advising a client to place £160,000 in the fund.
The Financial Conduct Agency has issued warnings about bogus IFAs and financial advice firms, but, as most expats are aware, their jurisdiction is restricted to the UK. The two scammers will be out of action for a while, but those defrauded in the same manner in overseas expat destinations have no protection against the high number of similar bogus advisors active in their communities.
John Cooper and Gary Hexley were both found guilty and sentenced to 9 months and 2 years’ imprisonment respectively. A financial advisory company, Birmingham-based Exclusive Asset Management, was fined £60,000 for allowing their employee Hexley to give poor investment advice.
Following complaints from clients, the FSA, now the FCA, investigated the pair and found that Hexley had already been banned from giving investment advice. He had lied to his clients about the Metatron Global Fund, a high-risk Mauritius-based start-up company with no track record paying high commission rates to FAs.
Hexley had been paid some £74,000 in commissions, and was found guilty of giving unauthorised advice and on five counts of dishonesty. Cooper, who had received £6,000 in commissions, was found guilty of concealing Hexley’s non-status as an FA and advising a client to place £160,000 in the fund.
The Financial Conduct Agency has issued warnings about bogus IFAs and financial advice firms, but, as most expats are aware, their jurisdiction is restricted to the UK. The two scammers will be out of action for a while, but those defrauded in the same manner in overseas expat destinations have no protection against the high number of similar bogus advisors active in their communities.
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