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.