On 30 May 2012, the FSA announced that it had fined independent financial adviser (IFA) Patrick Francis O’Donnell of P3 Wealth Management Limited, £60,000 for advising his clients to invest in unsuitable non-mainstream investments and Unregulated Collective Investment Schemes (UCIS). Non-mainstream investments include, amongst other things, traded life policy investments and unlisted shares. Mr. O’Donnell has also been banned from performing any function in relation to any regulated activity in the financial services industry.

The FSA found that around two thirds of Mr. O’Donnell’s clients invested over 75% of their available funds into UCIS and other non-mainstream investments. Many of his customers received advice that was unsuitable for them. UCIS cannot be promoted to the general public in the UK, and should be marketed to limited people such as sophisticated investors and high net worth individuals. The FSA has previously taken action against a number of firms and individuals in relation to UCIS, including Rockingham Independent Limited, Moneywise IFA Limited and Specialist Solutions Plc. Final Notice for Mr. O’Donnell.