FCA decides to ban and fine Daniel Thomas over unauthorised pension transfer advice

Mr Thomas was a director and financial adviser at DPT Financial Solutions Limited. Over 5 years Mr Thomas advised 53 clients about 63 transfers out of defined benefit pension schemes and is believed to have earned more than £173,000 in fees.

Mr Thomas repeatedly misled clients and pension providers about his professional qualifications, destroyed client records and failed to co-operate with the FCA's investigation.

Mr Thomas’ firm was an appointed representative. This meant another firm (known as a principal) had responsibility for overseeing its actions. Mr Thomas provided misleading information to his principal firm about his involvement in the pension transfer cases.

It is not normally in consumers’ best interests to transfer out of defined benefit pensions because they provide valuable, guaranteed benefits which increase annually. That is why only those advisers with specialist qualifications and the correct permissions can advise people on whether to transfer out.

Therese Chambers, executive director of enforcement and market oversight at the FCA, said:

'When you advise someone on their pension, you hold their future in your hands. Mr Thomas recklessly betrayed that responsibility. We will not stop acting against those ignoring our rules and unfairly putting people and their hard-earned money at risk.'

Notes to editors

1. Decision Notice: Daniel Philip Thomas[1] (PDF)
2. DPT Financial Solutions Limited was an appointed representative of Quilter Financial Services Ltd (the principal firm). An appointed representative is a firm or person who carries on a regulated activity on behalf, and under the responsibility of, a firm authorised by the FCA. The FCA has made no findings against Quilter in connection with this matter.
3. Defined benefit pension schemes provide valuable, guaranteed retirement income that cannot be replicated by other investments, in most cases, the FCA expects consumers to remain in these schemes. Advice on transfers must be provided, or checked, by a qualified Pension Transfer Specialist. Mr Thomas did not hold the qualifications required to perform this role.
4. In 2021, the FCA confirmed measures to improve the defined benefit pension transfer market. Read the finalised guidance[2].
5. See the FCA’s defined benefit pension transfer advice checker[3] to check if you received poor transfer advice.
6. The FCA has the power to impose financial penalties under section 66 of the Financial Services and Markets Act 2000 and to prohibit individuals under section 56 of that Act. 
7. Information for customers wishing to make a complaint to Quilter[4]. 
8. Information for customers wishing to make a complaint to the FOS[5].
9. Some of Mr Thomas’ clients were members of the British Steel Pension Scheme and were in a particularly vulnerable position when he was advising them. The FCA has previously taken enforcement action[6] against a wide range of firms and individuals for misconduct involving advice given to consumers to transfer out of the British Steel Pension Scheme. 
10. In addition to fining him £173,000 (plus interest), the penalty imposed includes an amount to reflect the seriousness of the misconduct, which is based on a percentage of Mr Thomas’ relevant income from DPT Financial Solutions Limited during the period connected to the breach. It also includes an uplift for failing to cooperate with the FCA’s investigation. The full calculation is set out at paragraph 6 of the Decision Notice.
11. Find out more information about the FCA[7].
12. Find out more information about the Upper Tribunal (Tax and Chancery Chambers)[8].