16th Sep 2014 09:36
LONDON (Alliance News) - The Financial Conduct Authority on Tuesday said it has fined Peter Carron, a former senior partner at St James's Place Wealth Management PLC, GBP300,000 after he was found to have advised clients to invest a total of GBP2.4 million in three companies in which he was a director without adequately disclosing his interests.
Between 2004 and 2010, Carron advised clients to invest GBP2.4 million in the three companies without disclosing his position on the board of the firms. These clients later lost approximately GBP2.2 million when the companies were placed into liquidation between May and August 2010.
St James's Place subsequently paid GBP1.9 million in compensation to the 11 investors involved.
The FCA, the City regulator, said its investigation concluded that Carron "lacks honesty and integrity". The watchdog has fined Carron GBP300,000 and banned him from performing any function related to regulated activities in the financial services industry.
"Carron misled clients about the likely performance of their investments, by guaranteeing a return or providing inappropriate financial projections of future returns," said Tracy McDermott, director of enforcement and financial crime at the FCA.
"Carron continued to reassure investors and advise them to invest, even when he knew his companies were in financial difficulties. He also led clients to believe that the investments were approved or endorsed by St James?s Place, which was not the case. What is more, Carron advised the clients to invest without assessing whether the investments were suitable for their needs, and failed to alert them to the possible risks," McDermott added.
St James's Place shares were down 2.4% to 678.00 pence on Tuesday, making it the third worst performer in the FTSE 100.
By Sam Unsted; [email protected]; @SamUAtAlliance
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