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FCA bans former mortgage broker

FCA bans former mortgage broker

The City watchdog has banned equity release specialist Kevin Allen from performing any function related to regulated activity after he allegedly transferred £1m illegitimately to his firm.

According to the FCA, the severity of Mr Allen’s actions, as sole shareholder of NMB, a mortgage intermediary, meant he would have been fined £248,500 had he not provided evidence that any financial penalty would have caused him serious financial hardship.

In a final notice, the FCA found that Mr Allen had been sole shareholder of NMB, while holding controlled functions at another firm offering equity release mortgage products, New Life.

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Between 2009 and 2013, Mr Allen made illegitimate transfers totalling £1m from New Life to NMB, without the knowledge of the other New Life directors.

New Life carried out an internal investigation and, in February 2013, submitted its investigation report to the FSA.