FCA Moves to Ban and Fine Financial Adviser Daniel Thomas £742,700 Over Unauthorised Pension Advice

The UK Financial Conduct Authority (FCA) has issued a Decision Notice stating its intention to fine financial adviser Daniel Thomas £742,700 and ban him from working in the financial services industry. The regulator found that Mr. Thomas recklessly provided defined benefit pension transfer advice without holding the requisite qualifications or regulatory permissions. Mr. Thomas has referred the Decision Notice to the Upper Tribunal, where he will present his case. The FCA's findings remain provisional pending the Tribunal's determination, and the regulator will take no enforcement action until the Tribunal reaches a final decision. According to the FCA, Mr. Thomas served as a director and financial adviser at DPT Financial Solutions Limited. Over a five-year period, he advised 53 clients on 63 transfers out of defined benefit pension schemes, generating more than £173,000 in fees. Some of the affected clients were members of the British Steel Pension Scheme, who were in particularly vulnerable positions when receiving the advice. The regulator found that Mr. Thomas repeatedly misled clients and pension providers regarding his professional credentials, destroyed client records, and failed to cooperate with the FCA's investigation. Furthermore, because DPT Financial Solutions Limited operated as an appointed representative of principal firm Quilter Financial Services Ltd, Mr. Thomas was found to have provided misleading information to Quilter regarding his involvement in pension transfer cases. The FCA noted that it has made no findings against Quilter in connection with the matter. Under regulatory standards, transferring out of defined benefit pensions is generally not considered in consumers' best interests due to the guaranteed, inflation-linked benefits such schemes provide. As a result, only advisers possessing specialist qualifications and specific permissions as Pension Transfer Specialists are permitted to advise on defined benefit transfers. Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, stated that advising on pensions carries substantial responsibility for a client's financial future. She emphasized that the regulator will continue to take action against individuals who disregard regulatory rules and expose consumers' savings to risk.