The Upper Tribunal has upheld the FCA’s decision to ban financial adviser Darren Antony Reynolds – who the FCA said displayed the ‘worst misconduct’ out of all British Steel pension cases – from working in financial services and fine him £2,037,892.
Reynolds was one of a number financial advisers who gave unsuitable advice to members of the British Steel Pension Scheme (BSPS) to transfer out of the defined benefit (DB) scheme, despite knowing the advice was not suitable. However, the FCA said Reynolds was the worst offender it has seen as part of its enforcement work over the past few years.
According to the regulator, Reynolds’ advice to clients to transfer out the scheme and put their money into high-risk investments, provided through his firm Active Wealth, resulted in hundreds of people experiencing serious financial loss.
Over £17.6m has been paid in compensation to more than 470 affected customers, many of whom suffered losses in excess of statutory compensation limits.
Reynolds also let two unapproved people give pension advice, putting customers at risk. He then allegedly lied to regulators about this misconduct, allowed important evidence to be destroyed, and moved his family home into a trust to avoid paying his debts.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Mr Reynolds’ misconduct was the worst we saw out of all the British Steel Pension Scheme cases, and he caused untold damage to his clients.
“He acted in a way that was corrupt and dishonest, putting his own profits before people’s pensions and acting without integrity as he tried to cover his tracks.
“He has spent many years trying to evade responsibility for his actions. The Tribunal’s full endorsement of our findings now brings those efforts to avoid accountability to an end.
“We will pursue recovery of the penalty to the fullest possible extent and will not hesitate to bankrupt him if necessary. We will ensure that he does not retain a single penny of his corrupt profits.”
The tribunal said: “Mr Reynolds is clearly guilty of dreadful misconduct over a protracted period, which had very serious adverse impacts on a large number of retail customers. He is, as the Authority alleged, a corrupt and dishonest man lacking integrity.”
