Charles Anthony Llewellen Palmer, the majority shareholder of Standard Financial Group Limited, was handed the penalties in September.

But the FCA announced this morning he has referred the decision to the Upper Tribunal.

In September the FCA said it would bar him from “performing any significant influence function in relation to any regulated activity carried on by an authorised person, exempt person, or exempt professional firm”.

Today’s appeal means the Decision Notice has no “effect pending the determination by the tribunal”.

Mr Charles Palmer, a director and de facto CEO of Financial Limited and Investments Limited was alleged to have “failed to take adequate steps to ensure the firms’ appointed representatives and individual advisers who had approval to perform the CF30 customer function would give suitable advice to approximately 40,000 customers”.

The case relates to the period 24 February 2010 and 20 December 2012.

The FCA said today: “The Tribunal may uphold, vary or cancel the FCA’s decision. In the case of the decision to impose a penalty, the Tribunal will determine what (if any) is the appropriate action for the FCA to take, and remit the matter to the FCA with such directions as the Tribunal considers appropriate for giving effect to its determination.

“In the case of the decision to impose a prohibition order, the Tribunal will determine whether to dismiss the reference or remit it to the FCA with a direction to reconsider and reach a decision in accordance with the findings of the Tribunal. The Tribunal’s decision will be made public on its website.”

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• In a separate decision the FCA has fined former risk management director at the group, Ms Paivi Katriina Grigg, £14,807 for failing to ensure the network’s risk management framework was adequate to mitigate risks to the group’s customers.

A statement read: “The FCA found that Ms Grigg failed properly to understand and carry out a number of her specific responsibilities. Ms Grigg’s failures resulted in the Group operating under a flawed risk management framework which did not adequately identify and mitigate risks to the Group’s customers, causing consumer detriment.

“Of significant concern to the FCA was that despite Ms Grigg’s awareness that the Group’s business model posed an increased risk to customers because it afforded the Group’s ARs and CF30s a high degree of flexibility and freedom as to how they could operate within the network, Ms Grigg failed to ensure the increased risks to customers were adequately addressed in the risk management framework.

“Ms Grigg’s conduct put approximately 26,750 customers at risk of poor outcomes, including the risk of receiving unsuitable advice from the Group’s ARs and CF30s. The action taken against Ms Grigg is final as she has not referred her case to the tribunal.”