Martyn Powsney, the former director of Powsney & Co Ltd, failed to put in place systems and controls to ensure that customers received suitable advice and failed to take sufficient remedial action. The regulator has now deemed him to be unfit to run an authorised firm.

Following an initial visit in 2007, the FSA required Powsney to take action to rectify serious failings at Powsney & Co Ltd but, despite employing a compliance consultant to assist with the remedial work, he failed to take prompt, adequate action.

A subsequent assessment by the FSA in 2008, as part of its assessment programme for small firms, identified similar concerns to the 2007 visit.

The FSA has concluded that Powsney failed to establish appropriate systems and controls at the firm, didn’t demonstrate that the firm was providing suitable financial advice, and failed to fully appreciate or adequately undertake remedial action required by the FSA.

Tom Spender, FSA head of department, enforcement and financial crime, said: “Powsney lacked competence and capability. Even when FSA staff visited the firm in 2007 and 2008 and set remedial action, Powsney failed to implement the required changes.

“It is vital that those running firms have the necessary competence and capability to put systems and controls in place to ensure that suitable advice is given and customers are treated fairly. Individuals who do not have these qualities are a risk to consumers and face being banned.”

Powsney & Co Ltd, is currently in liquidation and is no longer authorised to conduct regulated business.