Three directors of a Carlisle company which provided financial advice and investment services have been disqualified from acting as directors for a total of 28 years, over allegations they transferred more than £2.6m of client money into unauthorised and inappropriate investments.
The disqualifications follow an investigation by the Insolvency Service after Quintillion Asset Management Ltd went in to liquidation in 2012.
Anton David Taylor, 46, of London, Simon Mark Silva-Peake, 41, of Essex, and David Frederick Taylor, 69, of Cumbria, have been disqualified from acting as directors for between six to 11 years.
All three have given undertakings to Vince Cable, business secretary, which prevent them from becoming directly or indirectly involved in the promotion, formation or management of a limited company for the duration of their bans.
Mr Frederick Taylor’s disqualification of six years commenced on 9 June, while Mr David Taylor and Mr Silva-Peake’s disqualifications of 11 years each start on 28 August.
Investigators found that the disqualified directors were responsible for transferring pension funds of at least £659,270 in breach of agreements with clients. A further £2m was transferred from client funds to investment schemes that were inappropriate to client risk profiles.
The directors’ failure to deliver the company’s accounting records meant that investigators’ were unable to account for unauthorised transfers of client’ funds or establish who within the company was responsible for, or had knowledge of, transfers of client monies.
Ken Beasley, of the Insolvency Service’s public interest unit, said: “Investors who believed that the company was providing professional investment advice to safeguard their pensions have lost significant sums of money.
“The company’s actions in making high risk investments against the wishes of clients were unacceptable and the directors bear that responsibility.
“By failing to preserve the company’s accounting records the directors also showed a fundamental disregard for their duties as directors of a limited company.
“The disqualifications demonstrate that the Insolvency Service will use its enforcement powers to remove irresponsible and culpable directors from operating with the benefit of limited liability in the business environment.”
Quintillion was compulsorily wound up on 14 August with an estimated deficiency to creditors of £2.26m.
In 2012 the Carlisle-based adviser had its permissions to carry on regulated business cancelled by the Financial Services Authority over its failure to pay £8,407 worth of fees and levies.
In April this year the firm was one of 16 that the Financial Services Compensation Scheme declared in default. So far it has paid out £62,000 on three claims against the firm.
