High Court Confirms Ban on Advisors by FCA

The High Court has confirmed the decision of the Financial Conduct Authority (FCA) to prohibit Richard Fenech and Heather Dunne from working in financial services. The court agreed that both acted dishonestly by providing a retrospective appointed representative agreement to the FCA. It was also established that Heather Dunne falsely claimed to have advised some pension schemes before she actually did and that she failed to exercise due care when advising on pension transfers. Meanwhile, Richard Fenech did not adequately supervise her work.

Heather Dunne advised about 92% of her clients to leave defined benefit pension schemes between April 2015 and June 2017, resulting in the transfer of over £126 million, including cases where it was not in the clients' best interests.

The FCA calculated the penalties based on the conclusion that all of Dunne’s advice violated regulatory requirements. However, the court determined that the penalties should reflect the fact that 18% of Dunne's clients received inappropriate advice. It also ruled that only the income Fenech earned from his relationship with Dunne should count towards his penalty.

Therese Chambers, Executive Director of Compliance and Market Supervision at the FCA, stated: "We welcome the court's ruling, which supports our decision that Fenech and Dunne are unsuitable to work in financial services."

The court agreed that the FCA must be able to rely on those it regulates at all times, even in times of stress and high pressure. These individuals did not pass that test and broke the trust placed in them.

Dishonesty and negligence have no place in our industry, and we will continue to take action against those who do not meet our standards. The penalties were reduced to £41,230 for Dunne and £16,046 for Fenech.

Precedent and Penalties

The High Court's decisions were issued on April 27, 2026, and July 27, 2026. Dunne and Fenech have 14 days from the decision to appeal. Dunne operated as an independent financial adviser under the name Heather Dunne Independent Financial Adviser (HDIFA) and was a specialist in pension transfers. HDIFA was an appointed representative of Financial Solutions Midhurst Ltd (FSML), owned by Fenech.

Market Impact

The FCA is committed to balancing thoroughness with speed to ensure that future investigations are rigorous and timely. In 2021, the FCA confirmed measures to improve the defined benefit pension transfer market. Check the defined benefit pension transfer advice checker from the FCA to see if you received poor transfer advice.

Client Resources

The High Court's decisions are published on its website. For more information, see the FCA press notice, December 2024. Clients wishing to file a complaint can contact the Financial Services Compensation Scheme.

Future Consequences

The FCA’s ongoing work includes improving oversight of appointed representatives to ensure proper consumer protection. The evolution in its approach reflects a commitment to positive change.