FCA moves to ban father and son over client money fraud
The Financial Conduct Authority (FCA) has moved to ban a father and son from the financial services industry after the High Court found they had engaged in fraud and misused client money.
The regulator said Alec Finch and Robert Finch failed to act with honesty and integrity while running AFL Insurance Brokers, using client money to fund the firm’s business expenses.
According to the FCA, the pair later created false financial records to make the business appear more financially attractive ahead of its sale, misleading the buyer as well as the firm’s accountants and auditors.
The regulator said they concealed the misuse of client money and overstated AFL’s financial position, leaving AFL with a significant client money deficit.
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Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “The High Court found that the Finches were the driving force behind every part of this serious fraud. They painted a false picture of a successful business and used client money for their own benefit – which they knew was wrong.
“We will not tolerate serious misconduct and will take action to remove wrongdoers from the industry.”
The FCA’s decision follows a High Court judgment issued on 27 September 2023.
Both men have referred their Decision Notices to the Upper Tribunal, meaning the regulator’s findings remain provisional pending the outcome of the proceedings.
The FCA said it would have imposed financial penalties of £121,200 on Alec Finch and £169,800 on Robert Finch.
However, both provided evidence that such penalties would cause them serious financial hardship.
AFL Insurance Brokers, which later changed its name to Ambon Brokers Limited, is no longer authorised by the FCA.
