FCA Prohibits Father and Son Due to Fraud and Misuse of Funds

The United Kingdom's Financial Conduct Authority (FCA) has decided to prohibit Alec Finch and Robert Finch from operating in the financial services market in the UK. This follows a ruling from the High Court that found they committed fraud and misused client funds. The decision notices have been referred to the High Court, meaning that the outcomes are still provisional, reflecting the FCA's interpretation of what transpired and how their behavior should be classified.

The High Court's ruling, dated September 27, 2023, determined that Alec and Robert Finch did not act with honesty and integrity at AFL Insurance Brokers Limited (AFL). They misused client money to fund AFL's business expenses. Subsequently, when attempting to sell AFL, they manipulated financial records to make the company appear more attractive, deceiving the buyer as well as their own accountants and auditors.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated:

'The High Court concluded that the Finches were the driving force behind this serious fraud. They presented a false image of a successful business and used client money for their own benefit, knowing it was wrong.'

In August 2020, the buyer of AFL initiated legal proceedings against Alec and Robert Finch for losses and damages, centered on the fraud committed by them. The FCA has taken action in response to the court's ruling.

Measures and Sanctions

After the High Court concluded its ruling, the FCA decided to impose sanctions on the Finches. However, both presented verifiable evidence that a financial penalty would cause them severe financial hardship, leading the FCA to refrain from imposing the fine of £121,200 on Alec Finch and £169,800 on Robert Finch.

Changes at AFL

AFL Insurance Brokers Limited changed its name to Ambon Brokers Limited and is no longer authorized by the FCA. This change reflects the actions of both the court and the FCA regarding the fraudulent practices committed.

Commitment to the Financial Market

The FCA is committed to ensuring a fair and thriving financial services market for the benefit of consumers and the economy. This case highlights the FCA’s firm stance against improper behavior within the industry.

For more information on the decisions made, the FCA has made decision notices available for Alec and Robert Finch.