Tribunal Upholds FCA Ban and £2m Fine in Major Pension Misconduct Case

The Upper Tribunal has upheld the FCA’s decision to ban Darren Antony Reynolds from working in financial services and fine him £2,037,892 for serious and sustained misconduct that caused significant consumer harm.

Darren Antony Reynolds was found to have acted dishonestly when providing pension transfer advice and investment recommendations, placing hundreds of customers at risk and causing substantial financial loss.

The Tribunal confirmed the FCA’s findings that Mr Reynolds repeatedly disregarded his customers’ best interests. He encouraged members of the British Steel Pension Scheme to transfer out of their defined benefit pensions, despite knowing the advice was wholly unsuitable for their circumstances.

Serious Harm to Consumers

In addition to unsuitable pension advice, Mr Reynolds recommended high-risk and inappropriate investments while concealing high exit fees and falsifying documents. His actions exposed hundreds of people to serious financial harm.

More than £17.6 million has already been paid in compensation to over 470 affected customers, with many individuals suffering losses that exceeded statutory compensation limits.

Systemic Misconduct and Attempts to Evade Accountability

The Tribunal also found that Mr Reynolds allowed two unapproved individuals to give pension advice, further endangering consumers. When challenged by regulators, he lied, permitted key evidence to be destroyed, and transferred his family home into a trust in an attempt to avoid paying his debts.

These actions demonstrated a pattern of deliberate misconduct and a sustained effort to evade regulatory scrutiny and financial responsibility.

A Strong Warning from the Regulator

“Mr Reynolds’ misconduct was the worst we saw across the British Steel Pension Scheme cases. He caused untold damage to his clients, acting corruptly and dishonestly while putting his own profits ahead of people’s pensions.”

“The Tribunal’s full endorsement of our findings brings his attempts to avoid accountability to an end. We will pursue recovery of the penalty to the fullest extent and will not hesitate to bankrupt him if necessary.”

— Therese Chambers, Joint Executive Director of Enforcement and Market Oversight, FCA

In its ruling, the Upper Tribunal described Mr Reynolds as “a corrupt and dishonest man lacking integrity,” noting the prolonged nature of his misconduct and its devastating impact on a large number of retail customers.

This decision reinforces the FCA’s commitment to holding individuals accountable, protecting pension savers, and maintaining trust in the UK’s financial system.