UK Financial Conduct Authority Fines And Bans Craig Buchan And Martin Cooke For Recklessly Breaching Requirements

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.'

Background

1. Read the Final Notice for Craig Buchan.
2. Read the Final Notice for Martin Cooke.
3. The FCA has determined that both Mr Buchan and Mr Cooke were not fit and proper to perform any regulated activities due to the serious nature of their breach of the requirements. 
4. The asset requirement was put in place on 14 December 2020.
5. The total withdrawn from MedDen’s bank account was £9,292.36 between the 15 and 21 December 2020. These funds have not been returned. 
6. Mr Cooke and Mr Buchan’s respective penalties of £61,020 and £58,437 were reduced due to circumstances of financial hardship.
7. The FCA has imposed a financial penalty of £6,037 on Mr Buchan and £6,020 on Mr Cooke under Section 66 of the Financial Services and Markets Act (the Act). Both subjects have been issued with a prohibition order to prevent them from performing any function related to regulated activities carried out by any authorised or exempt person, as outlined in section 56 of the Act. 
8. On 1 February 2021, MedDen entered voluntary liquidation.
9. The Financial Services Compensation Scheme has paid £2.2m in relation to 35 claims.
10. Find out more information about the FCA.