The Financial Conduct Authority (FCA) today announced it has taken action against Active Wealth (UK) Limited's Darren Reynolds and Andrew Deeney.。

The FCA decided to fine Reynolds £2,212,316 and ban him from working in financial services.。Deeney was fined £397,400 and banned from working in financial services。

The FCA found that Reynolds clearly ignored the interests of customers and was only concerned about their own personal interests.。He dishonestly established, maintained and concealed a business model that encouraged recommendations for products that would generate the highest commissions for consultants rather than the best results for clients, and used this to the detriment of Active Wealth's clients, resulting in him receiving £1.01 million in prohibited commissions。

These payments were made through a company affiliated with Reynolds and intentionally disguised their true source.。

Reynolds dishonestly advised more than 670 clients (including 150 members of the British Steel Pension Scheme (BSPS), who had no choice but to make decisions about their pensions) to put money into investments he knew were not suitable for them.。Reynolds dishonestly misled the FCA and recklessly allowed the destruction of evidence related to the investigation.。

The FCA also fined Deeney £397,400 and banned him from working in financial services.。

Deeney made more than £200,000 in personal financial gain by dishonestly charging banned commissions for inappropriate advice to Active Wealth customers。Deeney then continued his misconduct at Fortuna Wealth Management Limited (Fortuna), which he set up after buying Active Wealth's goodwill and customer database, after the firm repeatedly tried to mislead the FCA about its role in advising clients to invest in risky investments.。

As of June 2023, the Financial Services Compensation Scheme (FSCS) had paid more than £19.8 million in compensation to 511 former customers of Active Wealth.。At least 270 customers lost more than FSCS's compensation cap of £50,000。Without this cap, the compensation would have been more than £42.3 million.。

Reynolds applied for privacy in relation to his notice, but the higher tribunal rejected the application on 20 September 2023.。Deeney settles with FCA in May 2022。