The FCA also found that Mr Varley failed to act with integrity as a Director (CF1) and Compliance Oversight (CF10) controlled function (CF) holder and is therefore not a fit and proper person.
Mr Varley worked at Dickinsons Financial Management Limited (Dickinsons), a small financial advisory firm where he held a customer adviser function until January 2013. Following the Retail Distribution Review, the FCA introduced rules requiring that advisers hold a minimum level of qualification to be approved for a CF30 function. Although his CF30 approval was removed in January 2013 by the FCA at his request, Mr Varley still continued to advise retail customers between January 2013 and September 2017.
Mr Varley repeatedly misled his fellow directors by providing false information in board meetings about sitting and passing the relevant exams required for him to continue advising, and falsely claimed that he had applied to the FCA for approval as a CF30, as well as falsely informing the firm's PII providers about his qualifications.
As part of his CF10 function, Varley knowingly misled the FCA into believing that only 1 person at Dickinsons was providing retail investment advice to customers instead of 2 and deliberately concealed his misconduct.
Mr Varley’s actions led to Dickinsons going into voluntary liquidation and being dissolved.
Mark Steward, Executive Director of Enforcement and Market Oversight said:
"Mr Varley deliberately lied about his position and his misconduct continued for a number of years, potentially creating a risk of loss to customers. He continued to abuse his position of trust as a Director, proving that he lacks both honesty and integrity and poses a serious risk to consumers and to confidence in the financial system. Today’s ban should act as a deterrent to other senior individuals who abuse a position of trust."
