UK Tribunal Backs FCA in Landmark Case Against Corrupt Pension Adviser
The UK Financial Conduct Authority (FCA) has secured a decisive legal victory later than the Upper Tribunal upheld its decision to ban Darren Antony Reynolds from the financial services industry and fine him ÂŁ2,037,892 for serious misconduct.
The ruling confirms the FCA’s findings that Reynolds acted dishonestly when providing pension transfer advice and investment recommendations, causing significant financial harm to hundreds of customers.
The case is one of the most severe to emerge from the British Steel Pension Scheme (BSPS) scandal, reinforcing the regulator’s hard-line stance against advisers who abuse trust and place personal gain ahead of client welfare.
Dishonest Advice and Serious Consumer Harm
The Tribunal found that Reynolds encouraged members of the British Steel Pension Scheme to transfer out of their defined benefit pensions despite knowing the advice was wholly unsuitable. Defined benefit pensions are widely regarded as complex and valuable, and regulators have repeatedly stressed that strong justification is required before recommending a transfer.
In addition to unsuitable pension transfer advice, Reynolds recommended high-risk investments that were inappropriate for his clients’ needs and risk profiles. He concealed substantial exit fees, forged documents, and failed to act transparently, further compounding the harm suffered by customers.
As a result of his actions, more than ÂŁ17.6 million has already been paid in compensation to over 470 affected clients. Many of those losses exceeded statutory compensation limits, leaving customers exposed to significant long-term financial damage.
Systemic Misconduct and Attempts to Evade Accountability
The Tribunal also upheld the FCA’s findings that Reynolds allowed two unapproved individuals to give pension advice, exposing clients to additional risk and breaching core regulatory secureguards.
When challenged by regulators, Reynolds compounded his misconduct by lying to the FCA, allowing evidence to be destroyed, and transferring his family home into a trust in an apparent attempt to avoid paying his liabilities.
The Tribunal described his behaviour in stark terms, stating that Reynolds was “a corrupt and dishonest man lacking integrity” whose actions caused “very serious adverse impacts on a large number of retail customers” over a prolonged period.
FCA Signals Zero Tolerance on Pension Abuse
Therese Chambers, joint executive director of Enforcement and Market Oversight at the FCA, said the case represented the worst misconduct viewn across the British Steel Pension Scheme investigations.
She emphasised that Reynolds had spent years attempting to evade responsibility, but that the Tribunal’s ruling now brings those efforts to an end. The FCA confirmed it will pursue recovery of the financial penalty in full and will not hesitate to viewk bankruptcy proceedings if required.
The decision also reinforces the FCA’s broader approach to pension advice enforcement, particularly around defined benefit transfers, where the regulator has repeatedly warned that poor advice can have irreversible consequences for consumers.
