| Link(s): | FCA fines and bans Craig Buchan and Martin Cooke for recklessly breaching requirements | FCA Final Notice 2024: Martin Paul Cooke Final Notice 2024: Craig Buchan |
Context
The FCA has fined Craig Buchan and Martin Cooke, former partners of MedDen Financial Services LLP (MedDen), £6,037 and £6,020 (respectively) and banned them for recklessly breaching an asset requirement imposed on the firm. The FCA imposed an asset requirement on MedDen on 14 December 2020, 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. MedDen entered voluntary liquidation on 1 February 2021.
Key points to note and next actions
- The day after the requirement was imposed, Mr Buchan and Mr Cooke recklessly withdrew funds from MedDen’s bank account for their own benefit. This meant MedDen’s bank accounts held no funds for customers who were owed redress. Both individuals also failed to report the breach of the asset requirement to the FCA.
- The total withdrawn from MedDen’s bank account was £9,292.36 between the 15 and the 21 December 2020. These funds have not been returned.
- Mr Cooke’s and Mr Buchan’s respective penalties of £61,020 and £58,437 were reduced due to circumstances of financial hardship!
- The Financial Services Compensation Scheme has paid £2.2m in relation to 35 claims.
- Unsurprisingly, the FCA has determined that both Mr Buchan and Mr Cooke were not fit and proper to perform any regulated activities due to the serious nature of their breach of the requirements.
This serves as a further example of FCA action in relation to clear failings in Senior Management conduct, amounting to a lack of fitness and propriety.