The Upper Tribunal has upheld the Financial Conduct Authority’s (FCA) decision to ban a director and adviser from working in financial services due to pension transfer advice failings, but reduced their fines.

Richard Fenech, who was the sole director of Financial Solutions Midhurst Limited (FSML), and Heather Dunne, who was FSML’s appointed representative, trading as Heather Dunne Independent Financial Adviser, were fined and banned from working in financial services in December 2024.

The tribunal agreed that both acted dishonestly by provided a backdated appointed representative agreement to the FCA.

It also found that Dunne had falsely claimed she had given advice to some pension schemes before she had done so and she had failed to take proper care when giving pension transfer advice.

Meanwhile, the tribunal concluded that Fenech had failed to properly oversee Dunne’s work.

The FCA said Dunne advised around 92 per cent of her clients to transfer out of defined benefit (DB) pension schemes between April 2015 and June 2017, leading to more than £126m being transferred.

While the FCA had based both fines on the finding that all of Dunne’s advice had breached regulatory requirements, the tribunal ruled that the fines should reflect its finding that only 18 per cent of Dunne’s clients had received unsuitable advice.

It also ruled that only the income Fenech earned from his relationship with Dunne should count towards his fine.

Fenech’s fine has therefore been reduced from £270,646 to £16,046, while Dunne’s fine has been reduced from £399,817 to £41,230.

“We welcome the tribunal's ruling, which supports our decision that Mr Fenech and Ms Dunne are unfit to work in financial services,” said FCA executive director of enforcement and market oversight, Therese Chambers.

“The tribunal agreed that the FCA must be able to rely on those it regulates at all times, including in periods of stress and high pressure. These individuals failed that test and breached the trust placed in them.

“Dishonesty and negligence have no place in our industry, and we will continue to take action against those who fall short of our standards.”

Dunne and Fenech have 14 days from the date of the Upper Tribunal's decision to appeal.

---