FCA Bans Former Wealth Manager and Issues £755,000 Fine

The Financial Conduct Authority (FCA) has banned Frank Breuer from working in UK financial services and fined him £755,000 for repeatedly acting without integrity and placing customers at financial risk.

Frank Breuer was the joint owner and sole director of Bluesky Wealth Management Limited, a firm providing investment and pension advice. Although authorised to advise on defined benefit (DB) pension transfers, the firm failed to maintain the required professional indemnity insurance from April 2019 onwards.

This left customers exposed to significant financial risk, as compensation protections may not have been available if problems arose from the advice provided.

Customers Put at Risk

Despite knowing the firm was uninsured, Mr Breuer continued carrying out at least 16 defined benefit pension transfers. The FCA also found that he repeatedly provided misleading information regarding the firm’s insurance position.

In October 2019, the FCA introduced restrictions designed to protect customers and preserve the firm’s assets. However, the regulator found that Mr Breuer ignored these restrictions and removed substantial value from the business through large dividend payments, personal loans and transfers involving connected accounts.

Regulatory Action and Customer Harm

By September 2020, Mr Breuer was aware of regulatory concerns surrounding the suitability of Bluesky’s pension transfer advice. From June 2022 onwards, the Financial Ombudsman Service upheld multiple complaints against the firm relating to unsuitable advice.

In April 2023, Bluesky entered insolvency proceedings, leaving customer liabilities of at least £214,772.88 to be covered by the Financial Services Compensation Scheme (FSCS).

“Mr Breuer sought to evade paying compensation due to customers as a result of his own bad pension advice while enriching himself in the process. He repeatedly misled the FCA and ignored regulatory restrictions. He is not fit to work in financial services.”

— Therese Chambers, Joint Executive Director of Enforcement and Market Oversight, FCA

Support for Affected Customers

The FCA encourages anyone affected by Mr Breuer’s pension advice to visit the Financial Services Compensation Scheme (FSCS) website to check whether they may be eligible for compensation.

The case reinforces the FCA’s commitment to protecting consumers, maintaining trust in financial services, and taking strong enforcement action against individuals who place personal gain ahead of customer wellbeing.