A Wolverhampton-based financial adviser has been banned for eight years after his firm provided poor pension investment advice resulting in clients losing £7m ($8.7m, €7.9m).
Gerard Blakemore was the sole director of Blakemore Wealth Management and the company was authorised to provide investment advice around self-invested personal pension schemes (Sipps).
As of 24 February 2020, Gerard Blakemore has been disqualified from being a company director for eight years after he admitted to breaching his duties as a director of Blakemore Wealth Management.
The firm traded out of his home in Wolverhampton and, between April 2012 and October 2018, it invested funds on behalf of 34 clients.
The company entered into creditors voluntary liquidation in October 2018, which brought it to the attention of the Insolvency Service due to the substantial losses Blakemore Wealth Management caused its clients.
Details
Following further enquiries, investigators uncovered that Gerard Blakemore “had caused Blakemore Wealth Management to invest customers’ funds in high-risk schemes without carrying out adequate enquiries about their suitability”, the Insolvency Service said.
Clients had originally been aware of how their funds were being invested.
However, Gerard Blakemore “knowingly breached the terms of a 2012 intermediary agreement” with a Sipp operator when he “caused Blakemore Wealth Management to invest £8.3m of client funds without their knowledge in an unregulated overseas company”.
Of the money invested, only £607,500 was repaid to clients, and investigators uncovered that Gerard Blakemore was a director of the overseas company from July 2017.
Personal benefit
Further enquiries proved that “[Gerard]Blakemore had personally benefited from these unsuitable investments” and did not “disclose the payments to his clients or seek their agreement”.
He paid himself more than £247,000 through remuneration, dividends and benefits via commissions the company had received.
Gerard Blakemore also caused the company to transfer funds from client investments totalling around £2.1m to another company registered overseas, of which he was a director from July 2017, and he received £1.7m.
Protect investors
Dave Elliott, chief investigator for the Insolvency Service, said: “Gerard Blakemore was entrusted with millions of pounds to invest in legitimate pension investment schemes.
“The Wolverhampton director, however, totally disregarded his clients’ interest and caused substantial losses when he invested £8m in unsuitable products.
“Eight years is a significant ban and removing Gerard Blakemore from the corporate arena will protect investors from further harm due to his poor investment advice.”
