FCA's Megan Butler gives punchy warning on 'phoenixing' and 'lifeboating'

Director's pledge to target poor working practices

Hannah Godfrey
FCA executive director Megan Butler

FCA executive director Megan Butler

Megan Butler has warned advisers "we'll be onto you" should they carry out behaviour such as 'phoenixing', 'lifeboating' or setting up claims management companies to handle complaints against them.

Speaking at the Personal Investment Management and Financial Advice's (PIMFA) inaugural Virtual Fest on Thursday (4 June), the Financial Conduct Authority (FCA) executive director gave firms a punchy warning the regulator was keeping a close eye on market behaviour. She noted 'phoenixing' - where a firm folds and reincarnates as a different entity to avoid outstanding liabilities - and 'lifeboating' - where an existing firm is acquired pre-emptively before a firm folds - was "unacceptable". She also said the FCA had seen examples of advisers leaving advice firms, typically after givin...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Industry

Partner insight: Out of the wilderness

Partner insight: Out of the wilderness

Solving the problem of inertia in cash gives opportunities to both advisers and their clients, say Flagstone's Claire Jones and Grovewood Wealth Management's Lynne Gadsden.

Lynne Gadsden @ Flagstone
clock 11 August 2022 • 1 min read
SIF 2022: How to invest in biodiversity

SIF 2022: How to invest in biodiversity

Biodiversity panel

clock 04 August 2022 • 6 min read
Chris Hutchinson of Unicorn Asset Management

The Big Interview: What I learned after being dropped from Hargreaves Lansdown's Wealth Shortlist

'I’ve no interest in falling out with people'

clock 04 August 2022 • 6 min read