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

Director's pledge to target poor working practices

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...