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FCA bans ex-equity release boss over £1m ‘illegitimate transfers’

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The FCA has banned Kevin Allen, the former sole shareholder of mortgage intermediary NMB, for propping up the business through “illegitimate transfers” from New Life totalling £1m.

Allen, who was finance director at equity release provider New Life, funnelled the money between 2009 and 2013 without the knowledge of the other New Life directors.

Allen also fabricated an exchange of emails between himself and another director claiming to authorise one of the transactions and falsified a bank statement in order to mislead New Life’s auditors, the FCA says.

FCA acting director of enforcement and oversight Georgina Philippou says: “Mr Allen failed to act with honesty and integrity. He stole money in order to prop up his failing business and then lied in order to cover up his deception.

“It is essential that those who hold important roles in financial services can be trusted and so we have banned Mr Allen.”

The FCA says Allen would have been fined £248,500 had he not provided evidence that any financial penalty would cause him serious financial hardship.

The FCA says the issue came to light after Allen notified the regulator about the unauthorised transfers following his resignation from New Life in September 2012.

In October 2012, New Life carried out an internal investigation regarding the unauthorised transfers and in February 2013, the firm submitted its internal investigation report to the regulator.

NMB ceased trading on 26 April 2013 when it entered into administration. On 1 July 2013, NMB was sold to New Life and on 13 March 2014, NMB moved into creditors’ voluntary liquidation. New Life is now owned by Legal & General.

Allen has been disqualified as a director for three years, effective from 5 February 2013.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Er ! …… he stole ! and all he gets is a ban ? he got off the fine !, isn’t it the whole purpose of a fine, to cause financial hardship otherwise what’s the point ! and no prison sentence !

  2. Can the FCA impose prison sentences. Hopefully it is a life ban.

    Perhaps the DPP needs to look at this.

  3. Grant Mitchell 9th June 2015 at 11:23 am

    Thank goodness there weren’t any liberal do gooders involved otherwise he would have been sent to the Carribean for a holiday at the tax payers expense for all of the upset the investigation had caused him, he’ll be back in 5 years running a non regulated rip it out of your pension scheme business or head of the FCA -let me just work out the difference.

  4. DH has beaten me to it. An astonishing statement.

    “The FCA says Allen would also have been prosecuted for fraud had he not provided evidence that he would find prison tedious.”

    I wonder if FCA apparatchiks also discipline their children in this way. “Well Sascha, I’m sorry that little Tarquin smashed your window, and I was going to give him a clip round the ear, had he not provided evidence that it would sting. But I have banned him from smashing your windows in the future.”

  5. Good God DH be careful what you wish for! An FCA with the power to imprison would be very dangerous.

    What the FCA should do is refer this type of case to the police and the CPS and then let the law take its course

    • Sorry Garry they are not far from it (maybe even past it) ! only the court can pass sentence and imprison ?

      The regulator (FCA) can find you guilty, till “YOU” prove your innocence via a S166 which YOU pay for, fine “YOU” any arbitrary amount it deems appropriate, collect fees based on its own calculations to suit its budget without fear of contest, create rules and guidance to suit the FCA dogma, as like god (which ever one, you kneel before) himself, the FCA must be infallible; to the best of my knowledge, slavery was abolished in 1833…. not for us I fear we are very much financial slaves and in mental bondage to a master every bit more powerful than the police or CPS with total immunity to prosecution, question, or regard for human rights.

      The FCA may state “if you do nothing wrong you will have nothing to fear from us”……… yet almost daily I am forced to pay for, or be accountable, for the deeds of the bad, sorry, I DO have everything to fear !!

      Should a prison only be thought of as a building with iron bars ?

      Could I be guilty of being a bit melodramatic ? I don’t think so

      There are a few who understand who the regulator really is !

  6. Steve Barrett 9th June 2015 at 1:12 pm

    Agree with pretty much all comments so far. It beggars belief that this guy isn`t doing time – he is a thief and fraudster for God`s sake. Only banned as a director for 3 years !! That should be ad infinitum. It is becoming clear in this “modern” world that crime does pay.

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