Alec Finch & Anor v The Financial Conduct Authority

Facts

Alec Finch and his son Robert Finch were directors of AFL Insurance Brokers Limited, a wholesale insurance broker authorised by the Financial Conduct Authority and permitted to hold client money. Alec Finch was appointed a director in August 1998, resigning in May 2020, and held the CF1 and later CF2 controlled functions; Robert Finch became a director and Chief Executive in January 2009, resigning in May 2020, and held the CF1 controlled function. In September 2017 Alec Finch sold 58% of AFL's share capital to Next Generation Holdings Limited for £2,119,900. After the discovery of a significant deficit in AFL's client money account, AFL and NGHL commenced High Court proceedings in August 2020, and in September 2023 HHJ Johns KC found that the Applicants had perpetrated a major fraud on NGHL, had made fraudulent misrepresentations, had improperly used client money and had breached section 172(1) Companies Act 2006. Permission to appeal was refused, and a claim to set the judgment aside for fraud was struck out by Master Pester, subject to appeal. On 4 July 2025 the Authority issued decision notices finding each Applicant lacked honesty and integrity, deciding to publish a statement of misconduct under section 66 of the Financial Services and Markets Act 2000 and to make a prohibition order under section 56 of FSMA. Each Applicant referred his notice to the Tribunal on 31 July 2025 and applied for privacy.