[Weekly Wrap] Thoughts on the Adviser X case

Undoubtedly the attention this week has been on latest ruling made against a financial adviser by the Financial Advisers Disciplinary Committee (FADC). Just to recap a QFE essentially dobbed in one of its AFAs (Adviser X) to the Financial Markets Authority. The FMA took this particular person to the FADC who found against him.

The punishment seemed pretty harsh and included the loss of his ability to sell his book of clients to the QFE, nine months out of work, and although he has more than 20 years experience as an adviser he now has to work under supervision.

People have asked why couldn't this have been sorted out internally without going to the FADC? We have been told that the QFE has a responsibility to inform the FMA of such breaches. This QFE has done this previously but none have progressed to the FADC stage.

It wouldn't be out of line to question this. Indeed the FADC did wonder why the case had got to a hearing.