A former investment adviser has been fined £19,900 and banned by the Financial Conduct Authority (FCA) for fabricating his Statement of Professional Standing by using a template he found online.
The regulator determined Ewan King, an appointed representative of Intrinsic Independent, was not a fit and proper person, lacked honesty and integrity, and posed a risk to consumers and to confidence in the financial system.
SPSs prove that an adviser is qualified to the minimum standards put in place following the Retail Distribution Review (RDR), which include a QCF Level 4 qualification.
King, who did not have the relevant qualifications, is the first adviser to be banned by the FCA for fabricating these Statements.
As an AR, he managed to deceive his principal firm by completing two certificates using a Chartered Insurance Institute SPS template he discovered online.
Though ineligible to give advice, King made recommendations to three customers following the deception and received more than £6,330 in income as a result, an amount which helped determine his eventual penalty.
Tracey McDermott, director of enforcement and financial crime at the FCA, said: "Pushing up professional standards was a key objective of the RDR.
"Thousands of advisers have met those standards. Mr King failed not only to achieve the qualifications required by RDR but then acted dishonestly and continued advising customers.
"His conduct fell woefully short of the standard that we, and consumers, demand of those who work in the financial services industry."
King was an appointed representative, which meant that he had a contract with a principal firm allowing him to perform certain activities regulated by the FCA.
In early 2013, King led this firm to believe that he held a Statement of Professional Standing issued by the CII, one of the bodies accredited by the FCA to verify that advisers are qualified to the right level. When challenged to produce his Statement, King sent two fabricated documents.
The FCA later checked the validity of King's Statements to be told by the CII that he had not applied for, or been issued with, a Statement because he had not reached the right level of qualification. King later admitted to his principal firm that he had failed the relevant exams and his contract was subsequently terminated.
The FCA has made no findings against King's former principal firm.
Mr King agreed to settle at an early stage of the FCA's case and so qualified for a 30% discount. Were it not for this discount, the FCA would have imposed a financial penalty of £25,734.
