How can I handle being under investigation?

[Cryorcry]

I work as a mortgage/ insurance adviser for a high street bank. I gave someone an inappropriate recommendation for their circumstances due to a faliure to consider all the facts. I didn’t realise this at the time and it was actually picked up by our regulatory body.

At the time I gave the advice I was going through a very difficult period of my life. My wife had just admitted a long affair and my parents passed away within days of each other. This all happened within a month. Shortly after this I was signed off work because I wasn’t coping. I was signed off before any of this investigation came to light.

I know I ordinarily would not have made such an error. It was in large part down to my struggles. Would you mention that the personal circumstances had played a part or will it make no difference? My employer is obviously aware of what happened to me at this time. I also do want to take responsibility for what happened because I know it wasn’t good enough.

Whilst this is going on it’s all I can think about. I’m not sleeping or eating at the moment. How do you put it to one side whilst the investigation is conducted? I am very concerned I will lose my job. My employer is being very tight lipped about what is happening and when there will be an outcome.

It sounds like you have the backing of your QA team, which is great news, it normally boils down to whether we can 'justify' the error and show that they can prevent it re-occuring. The fact that your other files have been suitable will certainly go in your favour.
Whilst it's natural to lose confidence when something like this happens, just remember that you've been doing this job successfully, and people think you're a decent adviser (and they must otherwise they'd have cut you straight out, rather than supporting you). It's a difficult job with so many variables to keep track of, that things will go wrong from time to time. If I were you, don't start thinking about moving on just yet, show them that you've accepted your mistake and what you can put in place to avoid it happening again.
That said, if the worst happens, there will be firms that will take you on, you'll just need to be selective about who you approach.

There must be protocols to comply with? Did you ignore these protocols and take short cuts? I find it hard to believe one individual is left to use their own judgement on who is considered vulnerable.

Were any bonuses linked to performance?

Certain triggers means a case is checked before the advice is issued but this case didn’t meet those triggers. No bonus linked in anyway to the case.

So you followed protocol and it was still not flagged? Are the protocols robust enough? I am struggling to grasp how something so serious can slip through.

The protocol is that every case you write is checked until you are deemed competent then it is only when a case meets a certain trigger. (This one didn’t because I hadn’t picked up the vulnerability. Had I picked this up it would have been checked). In addition to that there are post sale checks both by our Quality Assurance team and the FCA. The FCA picked this up post sale. Meaning the advice had already been given. I can’t imagine anywhere checks every peice of advice before it goes out the door.

How easy is it to not pick up this vulnerability? What action did you not do or do wrong?

Hi OP,

I work in a very similar role. I don't know if you're aware, you probably are, but the FCA make huge investigations into the different areas of finance and insurance every few years, and they are currently doing a very in depth look into the insurance and protection industry. They're doing the same with my company, pulling cases, auditing calls, etc etc and finance / insurance is already heavily regulated, so this has come at a pretty shit time for you.

Good for you for getting a meeting with your line management, I don't really have too much advice but be honest, factual and hopefully they will see this as a mistake and you can keep your job. I know how cut throat this industry is, I've done it for 11 years. But there really is no room for error and I keep that in mind with every single client I have. Vulnerability markers on clients is a lot more evident now and it's something the FCA have asked IFAs to do, so always remember if someone is medically / financially / whatever it is vulnerable.

I'm guessing you're an advised based IFA or bank which always gives more room for error. Could you potentially leave before you're asked to, and look for a non-advisory role somewhere? Like a broker or something?

Best of luck.

@TheTreeLightsAreFuckingMeOffNow it does sound like you are in a very similar role (IFA). Do you know what would happen in your company if the FCA audited a file that was found to be unsuitable?

@Cryorcry I haven't any advice in terms of the investigation, but I just wanted to say that you sound like you've got the weight of the world on your shoulders and I hope you can find a way through this. My Dad worked in finance for half his life and I know how stressful it can be let alone when facing a life changing situation in your personal life (been there too 😟) and being under extreme pressure. We are all human, we all make mistakes. As somebody upthread said, nobody died. I absolutely would be honest about your personal struggles and the impact they have had on you. With a good work record and support from within your organisation, I hope you will be able to put this behind you. Good luck.

It depends what it is.

Sackable offences include:

Offering advise (if you work on the non-advisory side, we have an advisory side too)
Non-disclosure of medical information, minimising a medical disclosure.
If a client states a vulnerability and we use the vulnerability to exploit extra commissions or deals on the board.

Non sackable offences include:
Missing part of the script
Not marking the client as a vulnerable customer, as long as it does not affect or cause detriment to the clients policy or financial distress. For example, client noted they are a full time carer.. but could afford the policy or option they chose and it wouldn't affect the terms of the policy or advice / non advice given.

Could moving to a non-advisory IFA be an option OP? But very soon rather than later. I'd look into that, but remember the FCA make the rules when it comes to things like this. If you've caused considerable customer detriment that cannot be repaired, I'd be prepared for the worst and I'd prepare to step away from IFA. If it's repairable customer detriment / finance, I'd probably look to changing roles and going to non-advisory but either could be a risk without me knowing what actually happened. Feel free to PM me if you like!

Long time lurker, joined to add to this conversation. I work in regulatory compliance, including advice checking. Take a deep breath first. Unless you have a history of giving inappropriate advice I think it highly unlikely that you will be sacked for this. Quite rightly vulnerability is a key concern of the FCA and it is a focus of all advisory firms now. You’ve missed this particular customer’s situation and it has resulted in redress. Your firm will have insurance to cover this. The most likely outcome is that you will be placed on enhanced supervision, all of your advice will be checked for a stipulated period of time and you will undergo further training on vulnerable customers. You have outlined mitigating factors as to why you gave incorrect advice, I think these will be taken into account regarding any formal HR processes, I’d guess the most would be a 1st written warning.

I'm also under investigation suspended on full pay from work. It's awful

Just wondering how you’re getting on OP, any conclusion to the investigation? I hope it’s been a positive outcome for you.

I too thought about this the other day. I hope all is well.