The Financial Conduct Authority (FCA) has fined Peter Carron, former senior partner at St James’s Place £350,000 and banned him from conducting any function related to regulated activities in financial services for 13 years.
Carron advised 11 clients to invest a total of £2.4 million in three companies of which he was director and majority shareholder without adequately disclosing his interests between 2004 and 2010.
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He failed to adequately disclose his interest in three companies, which later went into liquidation between May and August 2010 prompting clients to lose approximately £2.2 million.
St James’s Place agreed to pay £1.9 million in compensation to the 11 investors involved.
The regulator said that Carron misled clients about the likely performance of their investments, by assuring a return or providing inappropriate financial projections of future returns.
He also continued to reassure investors and advise them to invest even after he knew that his companies were in financial difficulties.
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By GlobalDataAccording to FCA, Carron also misled clients saying that the investments were approved or endorsed by SJP and advised clients to invest without assessing whether the investments were suitable for their needs.
Tracey McDermott, director of enforcement and financial crime, FCA, said: "People go to advisers because they want expert help on how to make the most of their money. They are entitled to expect that their adviser will act in their best interests, not his own. Advisers should think very carefully and make clear and full disclosure if they are intending to advise clients to invest in ventures in which they have an interest."
