This is the second time enforcement action has been taken against the Glasgow-based firm.
The FSA would have imposed a fine of £180,000 on City Gate and £70,000 on Mr Domke but this could not be paid as the firm is in liquidation and Mr Domke, who also worked as compliance officer, said the fine could cause him serious financial hardship.
Problems at the firm included advising on pension transfers when it did not have permission to do so, failing to have adequate systems and controls in place and failing to ensure financial promotions complied with FSA rules.

Bill Sillett, head of retail enforcement, said: "City Gate is a repeat offender. It is rare the FSA has to take action against a firm more than once but City Gate's systems and controls remained poor despite our first enforcement.
"The fact that City Gate provided advice it did not have permission to give is inexcusable. It seriously aggravated the case against the firm.
"As a director and compliance officer, Domke had the opportunity to improve compliance at City Gate but failed to do so, leaving in place inadequate systems and controls and failing to monitor or check City Gate's appointed representatives."