The FCA has banned a pair of father and son brokers from working in financial services after they were found guilty of fraud.
The regulator’s decision follows a High Court ruling in 2023 that determined Alec and Robert Finch failed to act with honesty and integrity in their roles at AFL Insurance Brokers Limited (AFL).
Having misused client money to fund AFL’s business expenses, when they later wanted to sell AFL, the pair also made the business appear more financially attractive by creating false financial records to mislead the buyer, as well as their own accountants and auditors. Their actions left AFL burdened with a significant client money deficit, the FCA said.
In August 2020, the buyer of AFL began High Court proceedings against Alec Finch and Robert Finch for loss and damages, with the allegations centring on fraud by the Finches.
AFL subsequently changed its name to Ambon Brokers Limited and is no longer authorised by the FCA.
Both Alec Finch and Robert Finch avoided a fine by providing evidence that a financial penalty would cause them serious financial hardship. The Finches have referred the Decision Notices to the Upper Tribunal where each will present their case.
Therese Chambers, FCA joint executive director of enforcement and market oversight, said: ‘The High Court found that the Finches were the driving force behind every part of this serious fraud. They painted a false picture of a successful business and used client money for their own benefit – which they knew was wrong.
‘We will not tolerate serious misconduct and will take action to remove wrongdoers from the industry.’
