Warning Notice

On , the Financial Conduct Authority issued a Warning Notice to Chester and Newman Plumbing and Heating Services Ltd 
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Warning Notice Statement 24/2

The Financial Conduct Authority (“the FCA”) gave the following two individuals
warning notices on 13 July 2023 proposing to take action (being the imposition of
financial penalties) in respect of the conduct summarised in this statement.

An individual (Individual A) working as a financial adviser whilst an approved
person at the Firm.

An individual (Individual B) working as a financial adviser whilst an approved
person at the Firm.

IMPORTANT: A warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give
certain statutory notices described as within its scope by the FCA’s Handbook.

If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.

If either the RDC or the Upper Tribunal decides that no further action should
be taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.

The following is a summary of the reasons why the FCA gave the individuals
warning notices:

The FCA considers that the individuals engaged in reckless conduct that
demonstrates that they lack integrity.

The conduct took place between 1 October 2015 and 31 July 2016 (“the
Relevant Period”).

In particular, the FCA considers that, during the Relevant Period:

Individual A and Individual B recklessly designed a seriously flawed advice
model for defined benefit pension transfers (“the Pension Transfer Model”) in
partnership with an unauthorised introducer firm (“the Introducer”). The
Pension Transfer Model, as designed by Individual A and Individual B, failed
to gather sufficient information from clients, or take into account information
on the onward investment scheme, in order to provide suitable pension
transfer advice. Further, the Pension Transfer Model facilitated pension
transfers at a point when clients had received very limited advice.

Individual A and Individual B failed to address the risk that clients introduced
to the Firm by the Introducer would be encouraged to transfer out of their
defined benefit pension schemes and invest in high-risk, illiquid and
unregulated investments which were unlikely to be suitable for them,
notwithstanding the obvious indications they received of the Introducer’s
material financial interest in promoting those investments.

The FCA considers that the individuals’ respective conduct amount to a failure to
comply with regulatory requirements aimed at ensuring that customers received
suitable advice and were treated fairly.

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