Adviser fined and banned by FCA

Between 2004 and 2010, Peter Carron, formerly a senior partner at St James’s Place Wealth Management Plc, advised 11 clients to invest a total of £2.4m in three companies of which he was director and majority shareholder without adequately disclosing this fact to them. The clients later lost approximately £2.2m when the companies went into liquidation between May and August 2010. St James’s Place subsequently paid these 11 investors £1.9m in compensation.

As a result, the Financial Conduct Authority has concluded that Carron lacks honesty and integrity, fined him £300,000 and banned him from performing any function related to regulated activities in financial services.

Tracey McDermott, director of enforcement and financial crime, said:

“People go to advisers because they want expert help on how to make the most of their money. They are entitled to expect that their adviser will act in their best interests, not his own. Advisers should think very carefully and make clear and full disclosure if they are intending to advise clients to invest in ventures in which they have an interest.”

In August 2014, Carron was banned by the High Court for 13 years from acting as a director or managing or controlling a company.

The Financial Conduct Authority has not criticised St James’s Place in relation to this matter.