Case details for Omar Hussein

Name: Omar Hussein


Date of Birth: 30 / 6 / 1979

Date Order Starts: 26 / 5 / 2022

Disqualification Length: 11 Years 0 Month(s)

CRO Number: 09341649

Last Known Address: 41 Park Terrace, Dunston, , , GATESHEAD, NE11 9PA

Conduct: Between 20 March 2015 and 01 March 2017 (the period), Omar Hussein (Mr Hussein) failed to act in the best interests of Consumer Wealth Ltds (CWL) clients in that: 1. CWL traded as a provider of financial advice to pension customers considering switching their pension funds into a Self-Invested Personal Pension (SIPP). 2. Throughout the Period Mr Hussein was a qualified Financial Advisor, regulated by the FCA. Mr Hussein provided financial advice and recommendations to customers, and oversaw and approved the advice and recommendations given by the other Financial Advisors employed by CWL, to CWLs customers regarding switching their pension funds into a SIPP; 3. CWL recommended 620 of its customers to switch their existing pensions into a new SIPP when a pension switch was often unnecessary and not in their best interests. These SIPPs invested a significant proportion of the customers retirement savings into Portfolio 6 (P6), a portfolio of investments managed by a Discretionary Fund Management Company (the DFMC). 4. P6 was a high-risk investment principally due to the nature of its underlying investments. Documentation prepared by the DFMC in respect of P6 described the investment as being in non-correlated products and contained numerous risk warnings in relation to P6, including that the portfolio would consist of investments that were not regulated, illiquid in nature, were non-transferable, high risk, had a lack of transparency, lacked investor protection, and would not be covered by the FSCS; Mr Hussein recklessly disregarded these risks and provided unsuitable advice to CWLs customers in recommending they switch their pension savings into P6; 5. Suitability reports prepared by CWL for customers recommending the reasons for a customer to switch pensions were unclear and misleading, and information relating to the charges associated with switching pensions was misleading and untrue. 6. CWL recommended customers to switch a significant proportion of their existing pension funds into P6 which was completely unsuitable advice given the customers risk profiles, objectives and individual circumstances. The recommendations to customers went against those of P6s own fund manager which Mr Hussein ignored on the basis that he did not agree with those recommendations. 7. CWL completed and submitted application forms to the DFMC on behalf of each customer whom it recommended to invest in P6. Information submitted by CWL to the DFMC in respect of customers recklessly disregarded the risks of the intended investment to the customer and contained false and misleading statements and confirmations to the DFMC. The majority of the application forms from CWL to Greyfriars were signed by Mr Hussein; 8. Due to Mr Husseins failings, CWLs customers invested a total of 13.5million via their SIPPs into P6 which was unsuitable for them and which created a significant risk of loss to them; 9. CWLs target market in the period was stated to be clients who had limited experience of dealing with investment based financial products, were unfamiliar with complex investment products, who had a cautious or balanced attitude to risk and a limited capacity for loss. 10. CWL charged customers significant fees for an ongoing advice service. However, there is no evidence CWL ever provided this service to customers, or ever made any substantial arrangements to do so during the Period. CWL also failed to make clear to its customers this was an optional extra service separate to its pension switch advice. During the Period only a single customer declined the service; 11. On 19 April 2018, CWL voluntarily applied to the FCA to cancel its permission to carry out regulated activities; 12. CWL failed to act in the best interests of its customers, as a result of which at least 608 customers of CWL have made a claim for compensation to the Financial Services Compensation Scheme (FSCS). To date compensation of at least 11,527,401 has been paid to 545 customers of CWL by the FSCS, with at least 63 claims still being investigated. 13. On 11 October 2021, the FCA issued a Final Notice in respect of CWL. The FCA imposed a penalty of 116,000 on Mr Hussein and prohibited him from performing any function in relation to any regulated activity carried on by any authorised or exempt person, or exempt professional firm, pursuant to Section 56 of the Financial Services and Market Act 2000. 

This information is correct as at 6 / 5 / 2022

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