The FCA’s decision to impose a £2m fine and lifetime ban on a corrupt and dishonest pension adviser has been upheld by the upper tribunal.
The case centres around the mis-leading advice given to many British Steel workers to transfer out of the company’s defined benefit scheme. The FCA described the misconduct of Darren Antony Reynolds as “the worst” it had seen, saying he had shown “clear disregard for his customers’ interests”.
The regulator adds: “He encouraged British Steel Pension Scheme members to transfer out of their defined benefit pension scheme, despite knowing that the advice was wholly unsuitable.
“He also advised his customers to invest in high-risk and unsuitable products while at the same time hiding high exit fees and forging documents.”
It added the Reynolds actions exposed hundreds of people to 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.
The hearing heard that Reynolds also let two unapproved people give pension advice, putting customers at risk.
When confronted with his misconduct he lied to regulators, allowed important evidence to be destroyed, and moved his family home into a trust to avoid paying his debts.
FCA joint executive director of enforcement and market oversight Therese Chambers says: “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 noted: “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.”
