FCA bans and fines former Vector Wealth chief executive

The Financial Conduct Authority (FCA) has banned former Vector Wealth chief executive, Jeffrey Dawkins, and fined him nearly £270,000 over misconduct that led to £4m of losses from high-risk investments.

The regulator stated that Dawkins had sold Vector Wealth to a disqualified director in 2019, who described himself as CEO of Vector Wealth and wanted to use the firm’s authorisation status to sell mini bonds.

Although Dawkins informed the FCA he was still in charge of the firm, the new ‘CEO’ was actually running the firm, according to the regulator.

The FCA said this enabled the disqualified director to promote mini bonds using the legitimacy of Vector Wealth to make them seem safer than they were.

Former Vector Wealth senior manager, Kadir Kanizi, and the disqualified director promoted the bonds, but the FCA argued investors were not properly warned about the risks.

An average of £105,000 was invested by each investor, including one who invested £1.1m, with investors expected to lose a total of around £4m.

Kanizi has been banned from senior management roles and fined £20,000 for failing to make sure consumers were properly warned about the risks.

The FCA calculated that Kanizi should have been fined £80,096, but reduced the penalty after he evidenced that this would cause serious financial hardship.

Dawkins’ fine included a multiplier to reflect the seriousness of the conduct, as well as an uplift for failing to cooperate with the regulator’s investigation.

“Jeffrey Dawkins acted as a front man for a banned director, helping high-risk investments look safer than they were,” said FCA executive director of enforcement and market oversight, Therese Chambers.

“Mr Dawkins and Mr Kanizi allowed misleading promotions to draw in investors, many of whom now face significant losses.

“Mini bonds and similar investments are very high risk, and people should be extremely cautious.”

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