The Financial Conduct Authority (FCA) has cancelled an IFA’s permissions after it refused to pay compensation to a victim of mis-sold investments.
The Financial Ombudsman Service (FOS) issued Foreman Financial Services with a final notice after it repeatedly failed to comply with legislation.
An investigation was launched when a complainant was advised to invest in a Sipp to buy an off-plan Harlequin property.
FOS investigators found that advice given by Foreman Financial Services was unsuitable and ordered it to pay compensation to the complainant.
However, the IFA disputed the decision without seeking a judicial review. As a result, the FOS’ order was considered legally binding and the firm was still required to pay the compensation.
An FCA representative said: “Foreman Financial Services has failed to comply with the FOS Award, despite repeated requests by the FOS and the authority that it do so.”
“[The company] failed to satisfy the Authority that it is conducting its affairs in an appropriate manner, having regard in particular to the interests of consumers.”
The former managing director of the firm, Stephen Foreman, described the FOS’ ruling as ‘ridiculous’.
Although Foreman Financial Services has now closed down, a new firm named Quantum Wealth Planning now operates from the same address in Tunbridge Wells.
The managing director of the new firm is Michael Foreman, the son of Foreman Financial Services’ owners Stephen and Wendy Foreman.
Neither Stephen nor Wendy have a shareholding or directorship at the new company.