A firm of financial advisers which a British MEP tried to hide from European Parliament officials was fined by regulators for posing an “unacceptable risk” to customers, Political Scrapbook can reveal. TBO Investments is owned by UKIP’s Godfrey Bloom, who has sat on one of Europe’s top finance committees without declaring the potential conflict of interest.
A 2008 report by the Financial Services Authority condemned the company for failing to keep records and to “adequately supervise and monitor staff”. The ruling saw the firm slapped with a £28,000 penalty:
“The Financial Services Authority (FSA) has fined TBO Investments Limited (TBO) £28,000 for failing to clearly document the explanation of the risks of transactions to clients. It also failed to make and retain records that demonstrate the suitability of its advice and ensure that its business is conducted in accordance with FSA requirements.”
During much of the period 2001-2007 criticised by the FSA, Godfrey Bloom acted as a director and senior manager of the company.