UK Tribunal Upholds FCA Ban and £2 Million Fine Against Former Adviser

The Upper Tribunal has confirmed the UK Financial Conduct Authority's decision to permanently ban Darren Antony Reynolds from the financial services industry and impose a fine of £2,037,892.

The Tribunal found that Reynolds acted dishonestly when providing pension transfer advice and investment recommendations, causing serious harm to his clients. He was found to have consistently placed his own interests above those of his customers.

According to the findings, Reynolds encouraged members of the British Steel Pension Scheme to transfer out of their defined benefit pensions, despite knowing that such advice was entirely unsuitable. He also recommended high-risk and inappropriate investments, while concealing substantial exit fees and falsifying documentation.

The misconduct affected hundreds of customers and exposed them to significant financial losses. More than £17.6 million has been paid in compensation to over 470 individuals, with many receiving sums exceeding statutory compensation limits.

The Tribunal also noted that Reynolds allowed two unapproved individuals to provide pension advice, further increasing risks to clients. When regulators challenged his conduct, he provided false information, permitted the destruction of key evidence, and transferred ownership of his family home into a trust in an attempt to avoid paying his liabilities.

In its ruling, the Tribunal described Reynolds' actions as sustained and severe misconduct with serious consequences for retail customers. It concluded that he lacked integrity and acted dishonestly over an extended period.