The Financial Conduct Authority has set out a Decision Notice and decided to fine TailorMade Independent Limited chief executive Alistair Burns £233,600 for his failure to comply with regulatory standards.

The Decision Note sets out the FCA’s decision to prohibit burns from performing any senior management or significant influence function in relation to regulated activity in financial services. The FCA believes that the TMI CEO didn’t provide appropriate advice to its clients.

Between January 2010 and January 2013, TMI advised customers who were considering transferring or switching their existing pension funds via self-invested personal pensions into unregulated alternative investments including green oil, biofuels, farmland and overseas property. In the three year period, 1,661 customers invested £112,420,985 in alternative investments, many of which were not typically permitted by their existing pension schemes.

The FCA believes the personal recommendations process used to advise pensioners by TMI was inadequate as advisers, including Burns, didn’t take into account a customer’s individual circumstances and needs, and instead resulted in personal recommendations being made mostly on the basis of the customer’s objective of using their existing pension funds to purchase alternative investments.

The FCA said: “As a director Mr Burns was required to take reasonable steps to ensure TMI complied with regulatory standards. In the FCA’s view he did not do so.”

The Decision Notice also notes that Burns (and other individuals at TMI) received a considerable amount of financial benefit from his positions as director and shareholder of an unregulated introducer operating under the TailorMade name.

Burns has referred the Decision Notice to the Upper Tribunal where he and FCA will have the opportunity to present their cases. The Upper Tribunal will then make public its ultimate decision regarding the action, if any, the FCA should take.

If a prohibition order is imposed, the Tribunal will decide whether to dismiss the reference or redirect the FCA to reconsider and reach a decision in accordance to its findings.

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