Two financial advisers whose clients worked in the medical and dental community have been fined more than £6,000 each and banned by the FCA for recklessly breaching an asset requirement imposed on the firm.

Their actions led to the Financial Services Compensation Scheme paying £2.2m compensation in relation to 35 claims.

Craig Buchan and Martin Cooke were former partners of MedDen Financial Services LLP (MedDen) which advised on investments, pensions, insurance, mortgages and home finance.

The FCA imposed an asset requirement on MedDen, meaning the firm could not lower the value of any of its own assets. It 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.

The total withdrawn from MedDen’s bank account was £9,292.36 between 15 and 21 December 2020. A total of £4,647 was paid into a personal bank account in Mr Buchan’s name, and £4,650 was paid into a personal bank account in Mr Cooke’s name.

It 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.

Mr Buchan was fined £6,037 and Mr Cooke £6,020 for the offence, with their respective penalties of £61,020 and £58,437 reduced due to circumstances of financial hardship.

Both were deemed not fit and proper to perform any regulated activities due to the serious nature of their breach of the requirement.

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.”

MedDen was authorised and regulated by the FCA from 22 January 2008 to 16 August 2024. It entered voluntary liquidation in February 2021.