RegulationAug 15 2018

FCA orders firm to cease regulated business

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FCA orders firm to cease regulated business

The Financial Conduct Authority has ordered the advice firm belonging to convicted sex offender Frank Cochran to cease all regulated business.

According to the firm's page on the FCA's register, the regulator has also imposed restrictions on FSC's assets, meaning they cannot be disposed of, dealt with or diminished without consent.

The FCA has not revealed why this restriction was imposed, and the Financial Ombudsman Service has had only one complaint against it, dating back to 2015, which was not upheld.

But the restriction has been imposed until the regulator has approved someone to carry on the functions of director, compliance oversight and money laundering reporting.

According to a person with knowledge of the situation, FSC's book of clients was up for sale and a buyer has been found, though it is also understood the local branch of Quilter was approached to buy the client book but turned down the offer.

Quilter declined to comment.

Another local firm was also approached to buy the client book, it is understood, but was told it had already been sold before a meeting could be held.

The firm only has three regulated individuals associated with it, according to the FCA's register, and two of those also have roles at a nearby firm called DTB Investments.

One of them, Derek Baillie, has been a director of DTB since 2004 but took on additional roles at this firm earlier this year while Mark Mitchell has been involved with DTB since June.

Cochran was also director of Celebrity Financial Planning which was Wolverhampton Wanderers FC’s official wealth management provider until several years ago.

Earlier this year Cochran was jailed for seven years after being found guilty of assault by penetration, using controlling and coercive behaviour and putting a person in fear of violence by harassment.

Cochran, who was also placed on the sex offenders' register for life, had earlier pleaded guilty to possession of a Taser, which he had bought while on holiday in Florida in March 2014, and for the Taser offence received a 12-month sentence suspended for two years. His victim said he had used this to scare her.

He is currently listed as "inactive" on the FCA's register and is no longer listed as being involved with any regulated firms but it is understood an appeal against conviction is being considered.

A spokeswoman for FSC Investment Services and a spokesman for DTB declined to comment.

damian.fantato@ft.com