FCA proposes enforcement action against Hartley Pensions

The FCA considers that Hartley Pensions breached Principles 1 (Integrity), 3 (Management and Control), and 6 (Customers' Interests) of its Principles for Businesses during the period from 11 December 2019 to 15 June 2022.

Specifically, an individual at Hartley caused the firm to dishonestly provide false and misleading information to the FCA repeatedly, including in response to statutory information requirements.

Furthermore, Hartley, through this individual, improperly withdrew and invested substantial pension funds without following due diligence processes or obtaining pension holders' consent, solely for the individual's financial benefit.

The firm also acted recklessly by failing to communicate with pension holders about these investments and by not managing clear and acute conflicts of interest.

The FCA's warning notice states that Hartley's misconduct stemmed directly from the individual improperly prioritizing their own financial interests over those of the pension holders.

This highlights a severe failure in the firm's management and control mechanisms, allowing for repeated dishonest actions and a disregard for customer protection.

The proposed action underscores the regulator's focus on holding firms accountable for the integrity of their operations and the ethical conduct of their personnel.

This case emphasizes the critical importance of robust internal controls and transparent communication within financial services, especially when client funds are involved.