The FCA has taken action against two former senior managers from MedDen Financial Services for reckless conduct.
- Craig Buchan and Martin Cooke were fined over £6,000 each for breaching asset requirements.
- The managers withdrew more than £9,000 for personal use, violating FCA-imposed restrictions.
- MedDen Financial Services was primarily serving the medical and dental sectors with various financial services.
- The Financial Services Compensation Scheme has compensated affected clients with £2.2m after MedDen’s liquidation.
Craig Buchan and Martin Cooke, who formerly held senior positions at MedDen Financial Services, have been fined over £6,000 each by the Financial Conduct Authority (FCA) for reckless financial activities. Their actions involved the unauthorised withdrawal of more than £9,000 from MedDen’s bank accounts, a blatant disregard for the asset requirements imposed by the FCA.
These financial restrictions were put in place to ensure MedDen could not deplete its assets, thus safeguarding the funds meant for customer redress. The funds were intended to compensate clients who incurred financial losses due to erroneous financial advice. However, Buchan and Cooke’s withdrawal left the firm’s accounts depleted, compromising customer compensation.
MedDen Financial Services was known for catering to the financial needs of medical and dental professionals, offering services in investments, pensions, insurance, and home finance. Despite its focus on these sectors, the company failed to manage its financial responsibilities, leading to its voluntary liquidation in February 2021.
In the aftermath, the Financial Services Compensation Scheme has intervened, disbursing £2.2 million to address 35 claims from affected clients. This intervention highlights the serious impact of the former managers’ actions and the FCA’s commitment to enforcing stringent regulatory standards to protect consumers.
Therese Chambers, the joint executive director of enforcement and market oversight at the FCA, emphasised the agency’s dedication to maintaining strict standards within the financial sector. She stated, “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.” This statement underscores the agency’s proactive measures against financial misconduct.
The FCA’s decisive action underscores its dedication to protecting consumers and enforcing compliance within the financial sector.
