For years, I have championed the need for clear blue water between financial advice and product sales. The distinction is not just a regulatory nuance; it is the foundation of ethical, client-first financial planning. Despite the oversight of the Financial Conduct Authority (FCA), this oversight does not guarantee integrity. Consumers place their trust in a system that should protect them, yet week after week, cases emerge proving that this trust is misplaced.
Today, we examine yet another case—the investigation into Arthur Temlett (trading as Abacus Insurance Consultants) of Dumfries. The Financial Services Compensation Scheme (FSCS) and Police Scotland are currently investigating allegations that insurance premiums and potentially investment contributions were not passed on to providers. Despite FCA intervention restricting the firm in January, the damage had already been done. Clients who believed they were securing their financial futures are now left uncertain, forced to navigate the complexities of compensation claims.
This is not an isolated incident. It is part of a recurring pattern in financial services, where the blurred lines between advice and sales create fertile ground for consumer detriment. When financial professionals act simultaneously as advisers and as agents for product providers, conflicts of interest arise. Who is the adviser truly serving—the client, or the commission structure that rewards product sales?
Regulation Alone Is Not Enough
Many in the industry argue that FCA regulation provides consumers with sufficient protection. But time and time again, we see firms collapse, leaving clients stranded and reliant on compensation schemes. Regulation is reactive; it steps in after harm has occurred. Prevention requires a structural shift—one where financial planners operate without financial incentives tied to product sales. True fiduciary duty cannot exist when remuneration depends on the sale of a product rather than the quality of the advice itself.
A Call to Action
The financial services sector must acknowledge that these cases are not statistical anomalies—they are symptoms of a deeply flawed system. Advisers who dismiss these concerns without data must remember: I am not the Office for National Statistics. I am a consumer champion calling out injustice where I see it. The lived reality of those defrauded by the system is evidence enough.
To create a profession that truly serves the public, we must demand:
- A firm wall between advice and product sales.
- A fiduciary standard where advisers are paid solely for their guidance, not for selling solutions.
- Greater accountability for those who exploit consumer trust.
If financial planning is to regain public confidence, the industry must prioritise ethics over earnings. Until then, cases like Arthur Temlett’s will continue to surface—each one a tragic reminder of why blue water between advice and product is not just necessary, but essential.
Consumers who believe they have been affected should contact Police Scotland by dialling 101 and quoting crime reference number CR/0470100/24.
Academy of Life Planning 