The FCA has decided to ban a father and son from UK financial services after the High Court found that they had engaged in fraud and misused client money.
Alec Finch and Robert Finch have referred the Decision Notices to the Upper Tribunal where each will present their case. Any findings in the Decision Notices are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers their behaviour should be characterised.
In light of the High Court judgment, dated 27 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 Limited (AFL).
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 concealed the misuse of client money and overstated the firm’s financial position, leaving AFL burdened with a significant client money deficit.
Therese Chambers, FCA joint executive director of enforcement and market oversight, 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.'
In August 2020, the buyer of AFL commenced High Court proceedings against Alec Finch and Robert Finch for loss and damages, with the allegations centring on fraud by the Finches. The FCA has taken action in response to the Court’s judgment.
Notes to editors
- Notice of Decision for Alec Finch[1] (PDF).
- Notice of Decision for Robert Finch[2] (PDF).
- AFL subsequently changed its name to Ambon Brokers Limited and is no longer authorised by the FCA.
- Both Alec Finch and Robert Finch provided verifiable evidence that the imposition of a financial penalty of any amount would cause them serious financial hardship, otherwise the FCA would have imposed a financial penalty of £121,200 and £169,800 respectively.
- The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA[3].