The Financial Conduct Authority (FCA) has placed restrictions on Walton-on-Thames-based advice firm Independently East Ltd (IEL) for failing to engage with the regulator “in an open and cooperative way”.
The restrictions were imposed in February 2023.
The regulator has frozen the firm’s bank accounts and cancelled its permissions to carry out regulated activities.
In its supervisory notice, the UK watchdog said it took action due to concerns about whether the firm can be effectively supervised and holds appropriate resources.
The FCA also reported that IEL had not provided information requested about its clients, financial position or a Financial Ombudsman Service (FOS) award the firm was due to pay to a customer, following an upheld complaint to FOS by that customer.
No evidence of investment
The customer had paid £70,000 ($86,058, €79,112) to IEL’s business account, on the understanding the funds would be used to invest in a bond with a 3.25% interest rate below £50,000 and a 4.25% interest rate above that sum.
The FCA said it could find no evidence that the money had been invested in a bond or in anything else and that “it appears that some of the consumer’s funds were transferred to a personal account of the director.”
In September last year, FOS ordered IEL to pay the customer £70,000 plus interest at 1.5% per annum plus £500 for the distress and inconvenience caused.
IEL, which had been authorised since 2008, will be allowed to continue to deal with or dispose of any of its own assets, as long the sum involved does not exceed £1,000 or £5,000 in the case of legal expenses.
