The FCA bans Father and Son for Fraud and Misuse of Funds

The Financial Conduct Authority (FCA) of the United Kingdom has decided to ban Alec Finch and Robert Finch from UK financial services after the High Court determined that they committed fraud and misused client funds. Both have referred the Decision Notices to the High Court, where they will present their cases. Therefore, the findings of the Decision Notices are provisional and reflect the FCA's position on what occurred and how it believes their conduct should be characterized.

The High Court ruling from September 27, 2023, led the FCA to conclude that Alec Finch and Robert Finch did not act with honesty and integrity in their roles at AFL Insurance Brokers Limited (AFL). They used client money to fund AFL's business expenses. When attempting to sell AFL, they manipulated financial records to make it appear more financially attractive, deceiving the buyer as well as their own accountants and auditors.

Implications of the Ruling

The FCA decided to take action following the Court’s ruling. Alec and Robert Finch were found guilty of creating a significant deficit of client funds in AFL by overstating the company’s financial position. According to Therese Chambers, Joint Director of Enforcement at the FCA, "The High Court found that the Finches were the driving force behind this serious fraud. They presented a false picture of success and used client money for their benefit, which they knew was wrong. We will not tolerate serious misconduct and will take action to remove wrongdoers from the industry."

Legal Process and Consequences

In August 2020, the buyer of AFL initiated proceedings in the High Court against Alec Finch and Robert Finch for losses and damages focused on fraud. The FCA took action following the Court trial. AFL subsequently changed its name to Ambon Brokers Limited and is no longer authorized by the FCA.

Possible Financial Penalties

Both Finches provided verifiable evidence that imposing a financial penalty would cause them serious economic hardship. Otherwise, the FCA would have imposed fines of £121,200 and £169,800 respectively.

The FCA aims to maintain a fair and thriving financial services market, benefiting consumers and the economy. More information about the FCA.