Tribunal upholds FCA ban and £2 million fine for corrupt adviser Darren Reynolds

Darren Antony Reynolds engaged in dishonest conduct by providing unsuitable pension transfer advice and investment recommendations to his customers.

He specifically encouraged members of the British Steel Pension Scheme to transfer out of their defined benefit pensions, despite knowing the advice was entirely inappropriate.

Mr Reynolds also directed customers towards high-risk and unsuitable products, while simultaneously concealing high exit fees and forging critical documents.

This misconduct exposed hundreds of individuals to severe financial loss, with over £17.6 million paid in compensation to more than 470 affected customers.

Many of these individuals experienced losses exceeding statutory compensation limits.

The Upper Tribunal fully endorsed the Financial Conduct Authority's findings, describing Mr Reynolds as 'a corrupt and dishonest man lacking integrity' who committed 'dreadful misconduct over a protracted period'.

Beyond his direct financial advice, Mr Reynolds allowed two unapproved individuals to provide pension advice, further jeopardizing customer interests.

When confronted by regulators regarding his actions, he engaged in deceit, facilitated the destruction of important evidence, and attempted to shield his assets by moving his family home into a trust to evade debt repayment.

Therese Chambers, joint executive director of Enforcement and Market Oversight at the Financial Conduct Authority, stated that Mr Reynolds' misconduct was 'the worst we saw out of all the British Steel Pension Scheme cases,' causing 'untold damage' and prioritizing 'his own profits before people's pensions.'

The FCA has affirmed its commitment to pursuing full recovery of the penalty, indicating a willingness to bankrupt Mr Reynolds if necessary to prevent him from retaining any illicit gains.