FCA bans father and son brokers following fraud and misuse of client money

The FCA has banned a father and son from UK financial services after the High Court found that they had engaged in fraud and misused client money. 

In light of the High Court judgment in September 2023, the FCA decided that Alec Finch and Robert Finch "failed to act with honesty and integrity" in their roles at AFL Insurance Brokers. 

The regulator says the father and son misused client money to fund AFL’s business expenses. When they later wanted to sell AFL, the pair made the business appear more financially attractive by creating false financial records to mislead the buyer, as well as their own accountants and auditors.

They also allegedly concealed the misuse of client money and overstated the firm’s financial position, leaving AFL "burdened with a significant client money deficit".

In August 2020, the buyer of AFL commenced High Court proceedings against the pair for loss and damages, with the allegations centring on fraud by the Finches.

The Finches have referred the Decision Notices to the Upper Tribunal where each will present their case.

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."