Upper Tribunal Upholds FCA Ban on Pension Advisers Dunne and Fenech While Reducing Fines

The UK Upper Tribunal has upheld the Financial Conduct Authority's (FCA) decision to prohibit Richard Fenech and Heather Dunne from working in the financial services industry. The Tribunal determined that both individuals acted dishonestly by submitting a backdated appointed representative agreement to the regulator. According to the Tribunal's findings, Ms Dunne falsely claimed she had provided advice to certain pension schemes before she actually had, and failed to exercise proper care when delivering pension transfer advice. Meanwhile, Mr Fenech failed to maintain adequate oversight over her advisory work. Between April 2015 and June 2017, Ms Dunne advised approximately 92% of her clients to transfer out of defined benefit pension schemes, resulting in more than £126 million being transferred, including instances where transfers were not in the clients' best interests. While the FCA originally calculated financial penalties on the basis that all of Ms Dunne's advice breached regulatory standards, the Tribunal revised this approach. It determined that the penalties should reflect its finding that 18% of Ms Dunne's clients received unsuitable advice. Additionally, the Tribunal ruled that only the income Mr Fenech earned directly from his professional relationship with Ms Dunne should be factored into his penalty calculation. As a result, the Tribunal reduced the fines to £41,230 for Ms Dunne and £16,046 for Mr Fenech. Therese Chambers, the FCA's executive director of enforcement and market oversight, welcomed the Tribunal's backing of the industry bans, stating that the regulator must be able to rely on regulated individuals even during periods of stress and pressure. Chambers emphasized that dishonesty and negligence have no place in the financial sector and reiterated the regulator's commitment to taking action against those who fail to meet required standards. Both individuals have 14 days from the decision to lodge an appeal.