The Upper Tribunal has upheld the Financial Conduct Authority’s (FCA) decision to ban Richard Fenech and Heather Dunne from working in financial services, finding that both individuals failed to meet the standards expected of regulated professionals.

The Tribunal agreed that both acted dishonestly when they provided the FCA with a backdated appointed representative agreement. It also found serious shortcomings in the pension transfer advice provided by Ms Dunne and in Mr Fenech’s oversight of her work.

Tribunal Finds Dishonesty and Regulatory Failings

The Tribunal found that Heather Dunne falsely claimed to have provided advice to certain pension schemes before that advice had actually been given.

It also concluded that Ms Dunne failed to take appropriate care when advising clients about pension transfers. Richard Fenech, meanwhile, failed to properly oversee her work and did not provide the level of supervision expected of someone responsible for regulated activities.

More Than £126 Million Transferred From Pension Schemes

Between April 2015 and June 2017, Ms Dunne recommended that approximately 92% of her clients transfer out of defined benefit pension schemes.

These recommendations resulted in more than £126 million being transferred from defined benefit schemes. The Tribunal found that some of these transfers were not in the best interests of the clients involved.

Defined benefit pension schemes can provide valuable and guaranteed retirement benefits, meaning decisions to transfer out of such schemes require careful consideration and appropriate financial advice.

Tribunal Reduces the Financial Penalties

Although the Tribunal agreed that financial penalties were appropriate, it concluded that the original fines imposed by the FCA should be reduced.

The FCA had calculated both penalties on the basis that all of Ms Dunne’s pension transfer advice breached regulatory requirements. The Tribunal instead found that 18% of her clients had received unsuitable advice.

The Tribunal also determined that, when calculating Mr Fenech’s penalty, only the income he received from his relationship with Ms Dunne should be taken into account.

As a result, the fines were reduced to:

• £41,230 for Heather Dunne.
• £16,046 for Richard Fenech.

FCA Welcomes Tribunal Decision

Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight, welcomed the Tribunal’s ruling and said it supported the regulator’s decision that both individuals were unfit to work in financial services.

The FCA emphasized that regulated firms and individuals must be able to demonstrate honesty, integrity, and appropriate professional standards, including during periods of stress and pressure.

Why the Decision Matters

The case highlights the importance of suitable pension transfer advice and effective oversight within financial services firms.

The FCA expects financial professionals to act in the best interests of their clients and to maintain accurate and reliable records. Firms and individuals involved in regulated activities must also have appropriate systems of supervision and control in place.

The Tribunal’s decision reinforces the FCA’s ability to take enforcement action where individuals fail to meet these standards, particularly where dishonesty or negligence is involved.

FCA Continues Enforcement Action

The FCA has stated that dishonesty and negligence have no place in the financial services industry and that it will continue taking action against individuals and firms that fail to meet regulatory standards.

While the Upper Tribunal reduced the financial penalties, it upheld the central finding that Richard Fenech and Heather Dunne should be prevented from working in financial services.