Former business partners fined and banned by FCA for breaching order

Two former partners of MedDen Financial Services have been fined and banned by the FCA for breaching an asset requirement imposed on the firm.

MedDen, which entered voluntary liquidation in February 2021, provided services primarily to the medical and dental community, which included advice on insurance, investments, mortgages and home finance.

Craig Buchan and Martin Cooke were involved in the running of the business. According to an FCA document, Cooke’s responsibilities included insurance distribution, while Buchan was in charge of mortgage credit directive intermediation.

On 14 December 2020, an asset requirement was placed on the Coventry-based business by the FCA, meaning it could not diminish the value of any of its own assets.

However, partners Buchan and Cooke withdrew £9,292 from the company’s bank account between 15 and 21 December 2020.

The FCA said this was done “for their own benefit”.

As a result, MedDen’s bank accounts held no funds for customers who were owed redress for financial losses suffered because of advice they had received.

Both partners also failed to report the breach of the asset requirement to the FCA.

Punishment

As a result, Buchan and Cooke have been fined £6,037 and £6,020 respectively.

The FCA also determined that that duo “were not fit and proper to perform any regulated activities due to the serious nature of their breach of the requirements”.

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.”