Former financial firm partners fined and banned by FCA
Former partners of Coventry-based MedDen Financial Services LLP (MedDen) have been fined and banned for recklessly violating rules designed to safeguard the firm’s assets.
Craig Buchan and Martin Cooke were fined £6,037 and £6,020 under Section 66 of the Financial Services and Markets Act (the Act), with the penalties reduced due to financial hardship.
Both were also issued prohibition orders under Section 56 of the Act, preventing them from working in regulated financial services.
The FCA imposed an asset restriction on MedDen on 14 December 2020, barring the firm from reducing its assets to ensure money was available for customers owed compensation for financial losses caused by poor advice.
Despite this, between 15 and 21 December 2020, Buchan and Cooke withdrew £9,292.36 from MedDen’s bank account for personal use. These funds have not been returned, leaving nothing for affected customers.
The firm entered voluntary liquidation on 1 February 2021.
To date, the Financial Services Compensation Scheme has paid £2.2m to cover 35 claims from impacted customers.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated: “We are committed to upholding the highest standards in the financial services sector to protect consumers from misconduct. We use our powers to impose asset requirements to protect consumers from the risk that bad actors may dissipate funds that should be earmarked for redress. We take any attempt to circumvent this very seriously and we will not allow those involved to remain active in the industry.’
