FSA bans financial adviser for pension transfers failings

It said this exposed customers to the risk of receiving unsuitable advice.

Eaden traded as Liberty Financial Consultants, a firm specialising in mortgages and investments that has now ceased trading.

The FSA found that, between May 2004 and March 2005, Eaden "did not exercise due skill, care and diligence" in managing the business of Liberty.

In particular, it said Eaden failed to maintain an appropriate level of understanding of pension transfers and to adequately supervise and monitor the firm’s pension transfer specialist.

FSA head of retail enforcement Jonathan Phelan said: "Firms must have in place and operate effective systems to ensure suitable advice is given to customers – this is a key part of treating customers fairly.

"Eaden was responsible for ensuring that Liberty’s pension transfer specialist was effectively monitored, but he fell a long way short of achieving this. As a consequence he has been banned from being a senior manager.

"Our action should leave firms in no doubt that the FSA places great emphasis on the importance of adequate systems and controls, and individuals responsible for those systems and controls will be held accountable if they are not adequate."

The FSA has written to all customers who may have been affected saying that they may wish to seek independent advice as to whether their pension transfer was appropriate.