The UK watchdog described Alexander Stuart as “not a fit and proper person” who “poses a risk to consumers and to the integrity of the financial system”.
He has been ordered to pay £34,000 ($46,027, €38,538) before the end 28 September 2018 or risk the FCA recovering the entire outstanding amount as a debt owed.
Stuart is also prohibited from performing any function in relation to any regulated activities carried out by an authorised or exempt person or exempt professional firm.
Persistent lies
In April 2014, the FCA approved Stuart to perform the CF30 (customer) controlled function at SJP, as a result of his relationship with an appointed SJP representative Clearwater Wealth Management (CWM).
In December 2014, Stuart deliberately attempted to mislead his supervisor at SJP into believing he had passed one of the exams necessary for him to attain the Level 4 Qualification – specifically the Chartered Insurance Institute’s (CII) Diploma in Regulated Financial Planning.
This would make him eligible for a statement of professional standing (SPS) meaning he was independently verified as holding the appropriate qualification, had satisfied continuing professional development requirements and met the required ethical standards.
Failed
To qualify for Level 4, Stuart had to develop core technical knowledge and financial planning capabilities across six compulsory units – R01 to R06.
He attempted to convince SJP and the CII that he had passed units R03 through to R06.
In reality, however, he had failed R05 and not actually sat the other three.
On numerous occasions, Stuart attempted to mislead his supervisor at SJP and the CII about units he has sat and passed.
As part of his deception, he created and submitted a fake learning statement, which provides a record of completed units and attained credits, to both organisations.
Red handed
Stuart’s downfall came swiftly after he submitted the fake document to the CII.
A day after the CII received it on 13 January 2016, the institute sent a letter of enquiry to Stuart outlining a number of allegations against him.
On 14 January, Stuart showed the letter of enquiry to SJP and was suspended by CWM the next day.
At a meeting with CWM and SJP on 3 February 2016, Stuart resigned.
SJP submitted an application to the FCA on 11 February requesting that the regulator withdraw Stuart’s approval for SJP, with effect from the day he resigned.
SJP response
A spokesperson from SJP said: “St. James’s Place is committed to maintaining excellent professional standards and ensuring clients have access to the highest levels of knowledge and expertise. We take this responsibility very seriously and have stringent compliance procedures in place to address isolated incidents such as this.
“Action was taken to suspend Mr Stuart as soon as it became known that false statements and documents had been provided in relation to his qualifications. No financial detriment has been incurred by clients and he is no longer at the partner practice [CWM] concerned.”
