The FCA has repealed its ban for former Catalyst Investment Group director Andrew Wilkins after a decision by the Upper Tribunal.
In August 2013 the regulator sought to ban and fine Wilkins £100,000 over his role in the collapse of Catalyst, which is now in default.
Catalyst was censured by the FCA in October 2013 for misleading investors when promoting bonds issued by Luxembourg-based life settlement vehicle ARM Asset Backed Securities.
It trigged a £30m interim FSCS levy for investment advisers in 2013/14, which was later postponed until 2014/15.
The FCA also wanted to ban and fine former Catalyst chief executive Timothy Roberts £450,000.
Both men referred their cases to the Upper Tribunal.
The Tribunal backed the FCA’s sanctions for Roberts, but rejected its claim that Wilkins was not fit and proper.
It said Wilkins’ fine should be halved to £50,000, and referred the decision to ban him back to the FCA.
The FCA has now confirmed it will not ban Wilkins.
The Tribunal agreed with the FCA’s decision that Wilkins had acted without due care, skill and diligence.
However, the Tribunal rejected the FCA’s argument that Wilkins had acted recklessly and without integrity.
It also rejected the FCA’s argument that Wilkins lacked competence and noted that a number of steps he had taken demonstrated his concern for investors and their funds.
The Tribunal also said Wilkins had relied on his compliance function, on legal advice and on Roberts during the relevant period.