The FCA has imposed a reduced fine of £60,000 on Alistair Rae Burns and made an order banning him from performing any senior management function in financial services.

Mr Burns was chief executive of advice firm TailorMade Independent Ltd (TMI) which failed to give adequate personal recommendations to clients on pension transfers into SIPPS.

Mr Burns was originally handed a £233,600 penalty by the FCA in 2016, reduced on appeal.

The FCA has now confirmed the ban and fine and ordered Mr Burns to pay the fine by 5 October.

The FSCS compensation bill for his failed business could hit £106.5m, according to the FSCS.

So far, compensation totalling over Ј55.6 million has been paid by the Financial Services Compensation Scheme for claims upheld against TMI. This does not cover all the losses suffered by investors, which the FSCS assesses at more than Ј106.5 million.

TMI gave advice to 1,661 customers on putting £112million into alternative investments which were not normally permitted in pensions.

In its latest notice this week, the FCA said that TMI “failed to manage fairly and clearly disclose material conflict of interest to its customers, including on the part of Mr Burns personally.”

In July 2016 the regulator notified Mr Burns that it had decided to fine him for the failings. He appealed and the regulator has now confirmed its original decision.

In September 2016 Mr Burns referred the original FCA Decision Notice to the Upper Tribunal (Tax and Chancery Chamber).

The Tribunal determined that the financial penalty to be imposed on Mr Burns was £60,000. It dismissed Mr Burns’ case in respect of the authority’s decision to prohibit him from performing any senior management function.