Tribunal Upholds FCA Ban on Two Advisers Over High Risk Pension Investments

A UK tribunal has upheld a decision by the Financial Conduct Authority to ban two senior financial advisers and fine them after concluding that they exposed pension holders to unsuitable high risk investments. The ruling reinforces the regulator’s stance on protecting retirement savers from reckless financial advice.

The Upper Tribunal backed the FCA’s findings against Stephen Burdett and James Goodchild, who previously held senior positions at Synergy Wealth and Westbury Private Clients. The regulator determined that both advisers had failed to act with due care and responsibility when recommending investment strategies that carried significant risk for clients seeking to safeguard their pension savings.

According to the FCA, the advisers recklessly directed pension holders into high risk products that were not aligned with their financial circumstances or risk tolerance. Pension savings are typically intended to provide long term financial security, and regulators have consistently stressed that advisers must ensure recommendations are suitable and clearly explained.

The tribunal’s decision means the bans remain in place, preventing the two individuals from holding senior roles within regulated financial services firms. In addition to the professional prohibitions, the advisers will pay a combined total of £312,671 in financial penalties. The FCA said the fines reflect the seriousness of the misconduct and the potential harm posed to clients.

The case highlights ongoing concerns about the marketing of complex or speculative investment products to retail clients, particularly those nearing retirement. Over the past decade, the FCA has increased scrutiny of pension transfer advice and alternative investment schemes, warning firms that unsuitable recommendations can have lasting consequences for consumers.

Pension freedoms introduced in recent years have given savers more control over how they access their retirement funds. However, regulators have repeatedly cautioned that greater flexibility can also expose individuals to higher risks if advice is not properly tailored. The FCA has made clear that advisers must conduct thorough assessments of clients’ financial situations, objectives and capacity for loss before recommending investment changes.

In its response to the tribunal ruling, the regulator emphasised that holding senior advisers accountable is central to maintaining trust in the financial system. Enforcement actions, including bans and fines, are intended to deter similar conduct across the sector and signal that poor standards will not be tolerated.

For pension holders, the outcome serves as a reminder of the importance of seeking regulated advice and understanding the risks associated with higher return investments. While some products may offer attractive growth potential, they may not be suitable for those prioritising capital preservation or stable retirement income.

The tribunal’s endorsement of the FCA’s decision is likely to be viewed as a strong affirmation of the watchdog’s enforcement approach, particularly at a time when consumer protection remains high on the regulatory agenda across the UK financial services industry.