Telephone 020 3813 2890 for a free no obligation chat about your regulatory requirements with one of our compliance consultants.

© Compound Growth Limited 2012 - 2018 | Terms of Use

Registered in England and Wales as limited company number 07626537 - Registered Office 120 Pall Mall, London, SW1Y 5EA

We use cookies, if you consent to this use, please continue to browse our site.

Here to help with Regulation and Compliance

Compound Growth

Unauthorised Wealth Managers Banned for Lack of Integrity

22nd June 2016

Unauthorised Wealth Managers banned for lack of integrity

The FCA recently banned two wealth managers from working within the financial services industry ever again due to their lack of integrity.

The City watchdog announced the lifetime ban for two individuals - Mark Kelly and Patrick Gray - in a final notice and press release this month.

Patrick Gray was an adviser for PCD Wealth and Pensions Management a pseudonym that Mark Kelly operated under as an individual to provide financial services to UK customers.

A lack of integrity:

Over the course of 2008 to 2010, the regulator informs that nearly £24 million was invested by over 350 customers in risky and potentially unsuitable investments without the knowledge of consent of customers.

Advice was given to customers by Mr Gray in the knowledge that he had no qualifications or training to do so as well as providing customers with false pension reports containing misleading assurances.

In addition, they failed to tell customers that they were receiving commission and fees for these investments. These fee and commission payments were then taken directly out of customers’ investments without their knowledge and, over the period, amounted to £3.1 million.

The regulator informs the corrupt pair’s “process was designed to prevent customers from discovering where their funds had been invested and without regard to the sustainability of the investments for the customers.

These two individuals misused pension funds and as a result of their wrongdoings, many customers lost thousands of pounds from their savings with the FCA’s Director of enforcement and market oversight, Mark Steward saying they “endanger[ed] the retirement incomes of hundreds of people.”


It is interesting to note however, that neither of these individuals were authorised and regulated as ‘Approved Persons’ by the FCA at that time of the misconduct. As a result, the FCA has thus far been unable to fine them. However, it should be noted that further investigations continue and in the meantime, the FCA “considers it necessary to prohibit them to help protect consumers.

Importance of knowing who you are dealing with:

This sorry tale again highlights the importance to all industry participants – both consumers and financial service providers alike – of the need to know who you are dealing with.

Due diligence really is all important. Having greater knowledge and understanding of who you are dealing with can only help towards ensuring a higher level of protection of your interests, whatever they may be.

News & Views News & Views

Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.

Compliance Support from Compound Growth Ltd

Please contact our Compliance Support Team for a free no obligation discussion about any regulatory requirements you might have. Our regulatory & compliance consultants can provide support and assistance to help your business move forward compliantly.

Send Email

Call by Telephone:

(020) 3813 2890

Comment from the FCA:

The banned individuals:

“demonstrated a lack of  honesty and integrity such that [they] fail to meet the minimum regulatory standards  of the Authority”

FCA, Final Notices, June 2016

Comment from the FCA:

“Mr  Kelly’s  failings  and  actions  were  designed  to  enable  him  to  profit  at  the expense  of  consumers.  They  were calculated,  prolonged  and dishonest  and  he would have been aware of the clear risk that consumers would suffer a loss that their age would prevent them from recovering.”

FCA, Final Notices, June 2016