The Financial Conduct Authority’s decision to ban a former adviser from working in financial services and fine him £2m has been upheld by the Upper Tribunal.

An investigation by the regulator had previously found that Darren Reynolds was dishonest when he gave pension transfer advice and investment recommendations to his customers, causing them significant harm.

The FCA stated that Reynolds had shown a “clear disregard for his customers’ interests” when he encouraged British Steel Pension Scheme members to transfer out of their defined benefit pension scheme, despite knowing that the advice was unsuitable. He also advised his customers to invest in high-risk and unsuitable products while at the same time hiding high exit fees and forging documents.

Reynolds’ misconduct exposed hundreds of people to significant financial losses, with the regulator estimating that over £17.6m has been paid in compensation to more than 470 affected customers – many of whom suffered losses more than statutory compensation limits.

When confronted with his misconduct he was also found to have lied to regulators, allowed important evidence to be destroyed, and moved his family home into a trust to avoid paying his debts, the FCA said.

“Reynolds’ misconduct was the worst we saw out of all the British Steel Pension Scheme cases, and he caused untold damage to his clients,” said joint executive director of enforcement and market oversight at the FCA, Therese Chambers.

“He acted in a way that was corrupt and dishonest, putting his own profits before people’s pensions and acting without integrity as he tried to cover his tracks.

“He has spent many years trying to evade responsibility for his actions. The Tribunal’s full endorsement of our findings now brings those efforts to avoid accountability to an end. We will pursue recovery of the penalty to the fullest possible extent and will not hesitate to bankrupt him if necessary. We will ensure that he does not retain a single penny of his corrupt profits.”

The Tribunal noted that Reynolds was “clearly guilty of dreadful misconduct over a protracted period, which had very serious adverse impacts on a large number of retail customers. He is, as the Authority alleged, a corrupt and dishonest man lacking integrity.”

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