FSA takes action against investment firm and compliance director – The FSA has issued a public censure on City Gate Money Managers Limited (City Gate) and banned its director and compliance officer Stewart Wallace Domke from holding any significant influence functions in the future over unauthorised pension transfers.
Mr Domke was in breach of
- the FSA Statements of Principle 6 and 7 for approved persons and
City Gate was in breach of
- section 20(1)(a) of the Financial Services and Markets Act 2000,
- Principles 2 and 3 of the FSA’s Principles for Businesses and
- Conduct of Business Sourcebook COBS 4.5.2R.
City Gate, a personal investment firm, had advised on pension transfer and income drawdown business when
- it did not have the permission to do so and
- had produced a financial promotion that did not comply with the FSA rules.
The FSA also found that City Gate failed to have
- adequate systems and controls in place to monitor and oversee its advisers and appointed representatives.
This is the second time that the FSA has taken action against City Gate. In July 2009, the FSA fined City Gate for
- systems and controls failings (see Daily News 23 July 2009).
The FSA has banned Mr Domke because he
- did not address the failures identified by the FSA’s action in 2009 and
- did not ensure that the firm complied with the scope of its Part IV Permission.
The FSA would have imposed a fine of £180,000 on City Gate if the firm was not in voluntary liquidation and a fine of £70,000 on Mr Domke if a fine would not cause him serious financial hardship.
Copies of the final notices for City Gate and Mr Domke are available.
http://www.fsa.gov.uk/static/pubs/final/city-gate.pdf
http://www.fsa.gov.uk/static/pubs/final/stewart-domke.pdf
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