FCA moves to ban father and son for fraud and client money misuse at AFL Insurance Brokers following High Court judgment

The FCA has issued decision notices to ban Alec Finch and Robert Finch from UK financial services after the High Court found that the pair engaged in fraud and misused client money during their time at AFL Insurance Brokers. The regulator concluded that the Finches failed to act with honesty and integrity in their roles at AFL. The FCA's findings detail a pattern of conduct in which the father and son used AFL client money to fund the firm's business expenses. When the pair later sought to sell AFL, they created false financial records to mislead the prospective buyer and to conceal the client money deficit from the firm's own accountants and auditors. The result was that AFL was left burdened with a significant client money shortfall at the point of sale. In August 2020, the buyer of AFL commenced High Court proceedings against the Finches for loss and damages. Judgment against the pair was handed down on 27 September 2023. The FCA said it has now taken enforcement action in direct response to that court judgment. Therese Chambers, FCA joint executive director of enforcement and market oversight, said the High Court found that the Finches were "the driving force behind every part of this serious fraud" and that the regulator would not tolerate serious misconduct or fail to act to remove wrongdoers from the industry. Both Alec Finch and Robert Finch have referred the decision notices to the Upper Tribunal, where each will present their case. The FCA's findings are therefore provisional pending the Tribunal's determination and reflect the regulator's belief as to what occurred.