The Financial Conduct Authority published the decision notice against the former financial adviser Paul Reynolds, who – between 2005 and 2010 – allegedly miss-sold UCIS and geared-traded endowment policies (GTEPs) to eight clients, produced false client signatures on investor certificates, and made investments on behalf of clients without their knowledge.
Reynolds, who was chief executive of Aspire Personal Finance at the time, has also been accused of creating applications and documents containing false and misleading information, and deliberately producing inflated valuations of clients’ investments to conceal the poor performance of the investments he had recommended.
Specifically, the FCA said Reynolds advised six of the eight clients to invest a total of approximately £1.5m in GTEPs and seven of those clients to invest at least £591,480 in UCIS, either directly with providers or indirectly (through a self-invested personal pension or a wrap platform).
The FCA added that a number of the UCIS in which Reynolds’ clients invested have been suspended, resulting in financial losses.
The case is to be heard by the Upper Tribunal on 8 and 9 December, which may uphold, vary or cancel the FCA’s decision, before the verdict is made public on the tribunal’s website.
“Particularly serious”
The FCA said Reynolds’ recommendation of high-risk investment products was “particularly serious” because most of the clients were on low incomes, had little or no investment experience, and were unaware that they had invested in unregulated products.
The decision notice recommends that Reynolds should be exempt from any professional firm on the grounds that “he lacks honesty and integrity”.
Tracey McDermott, director of enforcement and financial crime, said: “People go to advisers because they want expert help to make the most of their money.
“They should be able to trust advisers to act in the customer’s best interest and recommend products which will suit their needs.
“It is critical that firms and individuals put their customers’ interests first.”
Reynolds was unsuccessful in an application to the tribunal to prevent the FCA from publishing the decision notice.
Aspire Personal Finance, which was previously known as Positive Financial Strategies, went into liquidation in 2010.
His current employer Holborn Assets was unavailable for comment.
