The Upper Tribunal has upheld the Financial Conduct Authority’s (FCA) decision to ban and fine an adviser over ‘dishonest’ pension transfer advice and investment recommendations.

Former Active Wealth company director, Darren Reynolds, was banned from working in financial services and fined £2m in September 2023 due to the “significant” harm caused to his customers.

He encouraged members of the British Steel Pension Scheme (BSPS) to transfer out of their defined benefit pension scheme.

Reynolds also advised his customers to invest in high-risk and unsuitable products while hiding high exit fees and forging documents.

The FCA said Reynolds knew that the advice was wholly unsuitable and showed a clear disregard for his customers’ interests.

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 allowed two unapproved people to give pension advice, which the FCA said put customers at risk.

Furthermore, when confronted about his misconduct, Reynolds lied to regulators, allowed important evidence to be destroyed, and moved his family home into a trust to avoid paying debts, according to the FCA.

The Upper Tribunal has upheld the FCA's initial decision to ban and fine Reynolds.

“Mr Reynolds’ misconduct was the worst we saw out of all the BSPS cases, and he caused untold damage to his clients,” said FCA joint executive director of enforcement and market oversight, Therese Chambers.

“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.”

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