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FCA Fines Inspirational Financial Management Ltd £897,840 for Unsuitable Pension Transfer Advice

In March 2024, the FCA fined Inspirational Financial Management Ltd (IFM) £897,840 for providing unsuitable pension transfer advice, particularly to members of the British Steel Pension Scheme (BSPS). Between 2015 and 2017, IFM advised 85% of its customers, many of whom were BSPS members, to transfer their pensions into alternative schemes, despite FCA guidance suggesting transfers out of defined benefit schemes were generally unsuitable.

IFM’s advice exposed 307 customers to significant financial risks, with £110 million in total transfer value affected. The FCA found that IFM failed to gather sufficient customer information to assess the appropriateness of transfers, used misleading suitability reports, and did not properly analyze the risks involved.

FCA vs. SEC

Key Findings:

  1. High-Risk Transfers: IFM advised 89% of its BSPS customers to transfer their pensions, even when unsuitable.
  2. Failure in Duty of Care: IFM did not properly assess customer financial situations, nor did it provide customers with appropriate transfer analysis.
  3. Inadequate Compliance and Oversight: Lack of compliance checks and proper review systems led to systemic failures in the advice process.

The FCA noted that IFM’s breaches were particularly serious due to the significant risk posed to consumers, many of whom were vulnerable BSPS members. IFM has since gone into administration, and redress for affected customers will take priority over financial penalties.

For more details, refer to the FCA’s final notice​(inspirational-financial…).

About Michael Rasmussen

Michael Rasmussen is the founder of United Atlantic Legal Services. He is a licensed attorney in Florida and registered solicitor in the United Kingdom. Michael has acted as General Counsel and Chief Compliance Officer to several investment advisers, including private fund managers, responsible for the management of billions of dollars in client assets.  

Michael is also the founder of FinProLaw, an online learning platform where Michael has created courses designed for investment adviser compliance professionals. These courses include: 

  • Investment Adviser Compliance Essential for Chief Compliance Officers 
  • Foundations of Investment Adviser Compliance 
  • What is a “Security”? 
  • Investment Adviser Marketing Rule 
  • Regulation A – Exemption from Registration 
  • Regulation Crowdfunding – Exemption from Registration 
  • Regulation D – Exemption from Registration 

Michael can also be found on LinkedIn.

Investment adviser firms who are also clients of United Atlantic Legal Services can receive many of these courses at a significantly reduced fee or, in some cases, at no expense. Contact us today or visit the FinProLaw to learn more.