Conflicts of interests [COI] result in IFA being prohibited from Jersey finance industry
The JFSC have prohibited Mr Gufur Hussain from working in the Island’s finance industry for lacking integrity.
- Investigated Mr Hussain’s conduct after he arranged loans of more than £1million from people who were his financial advice clients
- Investigation concluded:
- That he repeatedly failed to disclose conflicts of interest to the company he worked for as a financial adviser and knowingly provided the JFSC with false and/or misleading information.
- That Mr Hussain continued to have contact with clients when the regulator had imposed directions on him not to do so.
JFSC Director General, Martin Moloney commented:
- “Mr Hussain failed in his obligations to disclose conflicts of interest.
- Becoming a beneficiary of a client’s investment decisions while being their adviser is the underlying source of the conflicts of interest in this kind of case.
- Being someone’s financial adviser is a huge responsibility.
- It is vitally important to be open and frank with your employer and the JFSC.
- The smart thing for financial advisers to do is make sure they keep their own financing entirely separate from the investment choices of those they advise.”
The JFSC have published a public statement outlining the conclusions of its investigation. https://www.jerseyfsc.org/news-and-events/independent-financial-adviser-prohibited-from-finance-industry/