"We use our powers to impose asset requirements to protect consumers from the risk that bad actors may dissipate funds that should be earmarked for redress."
- Therese Chambers, joint executive director of enforcement and market oversight at the FCA
Craig Buchan and Martin Cooke, former partners of MedDen Financial Services, have been fined £6,037 and £6,020 respectively and banned by the FCA for "recklessly breaching an asset requirement imposed on the firm".
MedDen provided financial advisory services primarily to the medical and dental community, which included advice on investments, pensions, insurance, mortgages and home finance.
Both Buchan and Cooke held senior manager functions at MedDen under the Senior Managers Regime.
The FCA imposed an asset requirement on MedDen, meaning the firm could not diminish the value of any of its own assets. The asset requirement was imposed to safeguard MedDen’s assets for the benefit of its customers who were owed redress for financial losses suffered because of advice they had received.
However, the FCA found that the day after the requirement was imposed, Buchan and Cooke "recklessly withdrew funds from MedDen’s bank account for their own benefit", totalling over £9,000.
This meant MedDen’s bank accounts held no funds for customers who were owed redress.
MedDen entered voluntary liquidation in February 2021 and the Financial Services Compensation Scheme has since paid £2.2m in relation to 35 claims.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: "We are committed to upholding the highest standards in the financial services sector to protect consumers from misconduct.
"We use our powers to impose asset requirements to protect consumers from the risk that bad actors may dissipate funds that should be earmarked for redress. We take any attempt to circumvent this very seriously and we will not allow those involved to remain active in the industry."
