Craig Buchan and Martin Cooke, former partners of MedDen Financial Services LLP (MedDen), have been fined £6,037 and £6,020 (respectively) and banned by the FCA for recklessly breaching an asset requirement imposed on the firm.

The FCA imposed an asset requirement on MedDen, meaning the firm could not diminish the value of any of its own assets. The asset requirement was imposed to safeguard MedDen’s assets for the benefit of its customers who were owed redress for financial losses suffered because of advice they had received.

However, the day after the requirement was imposed, Mr Buchan and Mr Cooke recklessly withdrew funds from MedDen’s bank account for their own benefit. This meant MedDen’s bank accounts held no funds for customers who were owed redress. Both individuals also failed to report the breach of the asset requirement to the FCA.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated:

‘We are committed to upholding the highest standards in the financial services sector to protect consumers from misconduct.

‘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. We take any attempt to circumvent this very seriously and we will not allow those involved to remain active in the industry.’