Financial Conduct Authority secures Upper Tribunal confirmation of ban and £2,037,892 fine for dishonest adviser Darren Antony Reynolds

The Financial Conduct Authority’s decision to ban Darren Antony Reynolds from working in financial services and fine him £2,037,892 has been upheld by the Upper Tribunal, following findings that he gave dishonest pension transfer advice and investment recommendations that caused significant customer harm. Reynolds encouraged British Steel Pension Scheme members to transfer out of their defined benefit scheme despite knowing the advice was wholly unsuitable, and advised customers to invest in high-risk and unsuitable products while concealing high exit fees and falsifying documents. The misconduct exposed hundreds of people to serious financial loss, with over £17.6m paid in compensation to more than 470 affected customers, many of whom suffered losses above statutory compensation limits. He also allowed two unapproved individuals to give pension advice and, when confronted, lied to regulators, allowed evidence to be destroyed and moved his family home into a trust to avoid paying debts; the Tribunal agreed with the FCA’s penalty calculation, including an uplift for aggravating factors, and applied no settlement discount. The FCA said it will pursue recovery of the penalty to the fullest possible extent, including bankrupting Reynolds if necessary. Separately, he was disqualified in May 2021 from acting as a company director for 13 years following an Insolvency Service investigation.