The Financial Conduct Authority (FCA) has fined and banned former Bluesky Wealth Management Limited sole director and joint owner, Frank Breuer, for serious misconduct relating to defined benefit (DB) pension transfer advice.

The regulator confirmed that Breuer has been banned from working in UK financial services and fined £755,000 after “repeatedly acting without integrity and putting customers at risk for personal financial gain”.

According to the FCA, Bluesky Wealth Management Limited, which provided advice on investments and pensions, was authorised to advise on DB pension transfers but did not have the appropriate professional indemnity insurance in place from April 2019.

The FCA said this meant customers were at risk of not receiving compensation if problems arose.

Despite this, Breuer carried out at least 16 DB pension transfers while knowingly uninsured, the regulator stated, adding that he also repeatedly misled the FCA about the firm’s insurance position.

In October 2019, Breuer agreed to restrictions imposed by the FCA to protect customers and the firm’s assets.

However, the regulator stated that he breached those restrictions by stripping assets from the business through large dividend payments to himself, personal loans, and transfers through connected accounts.

The FCA also revealed that Breuer was aware by September 2020 that the regulator had concerns regarding the suitability of Bluesky’s DB pension transfer advice.

In addition, from June 2022 onwards, the Financial Ombudsman Service upheld several complaints against Bluesky concerning DB advice provided by Breuer.

Breuer subsequently placed Bluesky into insolvency proceedings in April 2023, leaving customer liabilities of at least £214,772.88 to be covered by the Financial Services Compensation Scheme (FSCS).

FCA joint executive director of enforcement and market oversight, Therese Chambers, said: “Mr Breuer sought to evade paying compensation due to customers as a result of his own bad pension advice and feathered his own nest in the process, stripping substantial assets from his firm.

“He repeatedly misled the FCA and flouted FCA restrictions. He’s not fit to work in financial services.”

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