Upper Tribunal Upholds FCA Ban Against Corrupt Pension Adviser

The Upper Tribunal has upheld the Financial Conduct Authority’s decision to ban Darren Antony Reynolds from working in financial services and to fine him £2,037,892, marking one of the most serious enforcement outcomes arising from the British Steel Pension Scheme cases. The ruling, first published on 19 January 2026, represents a decisive endorsement of the FCA’s findings on dishonesty, lack of integrity and deliberate misconduct in pension transfer advice.

The Tribunal agreed that Mr Reynolds acted dishonestly when advising customers to transfer out of defined benefit pensions and into high risk and unsuitable investments, despite knowing that the advice was wholly inappropriate. His conduct demonstrated a sustained and calculated disregard for customer interests, including the concealment of excessive exit fees, the falsification of documents and the use of unapproved individuals to deliver regulated pension advice. These actions exposed hundreds of retail customers to severe financial harm.

The scale of consumer detriment was a central factor in the Tribunal’s decision. More than £17.6 million has already been paid in compensation to over 470 affected customers, with many losses exceeding statutory compensation limits. The Tribunal accepted the FCA’s assessment that Mr Reynolds’ behaviour was aggravated by attempts to mislead regulators, the destruction of evidence and asset shielding measures designed to avoid meeting his liabilities.

In strongly worded findings, the Tribunal described Mr Reynolds as a corrupt and dishonest individual whose misconduct occurred over a prolonged period and had very serious adverse consequences for a large number of consumers. It fully supported the FCA’s calculation of the financial penalty, including uplifts for aggravating factors, and confirmed that no settlement discount was appropriate given the nature of the case.

This decision reinforces the FCA’s enforcement stance on defined benefit pension transfer advice, particularly in relation to the British Steel Pension Scheme. It underscores the regulator’s expectation that advisers place customer interests above personal gain and adhere to the highest standards of integrity. The FCA has confirmed that it will pursue recovery of the penalty to the fullest extent, including bankruptcy proceedings if necessary, to ensure that no proceeds of misconduct are retained.

For the financial services sector, the ruling sends a clear signal that serious pension mis-selling, regulatory obstruction and dishonesty will attract the strongest possible sanctions, and that attempts to evade accountability will not succeed under regulatory or judicial scrutiny.

Read the press release here.