Name: Active Wealth (UK) Limited

Date of Birth: 3 / 10 / 1969

Date Order Starts: 15 / 6 / 2021

Disqualification Length: 13 Years 0 Month(s)

CRO Number: 09149811

Last Known Address: 8 Farmbridge Way,, , , , WALSALL,, WS2 0AH

Conduct: 1. Between 09 December 2014 and 14 December 2016, Darren Antony Reynolds (“Mr Reynolds”) failed to act in the best interests of Active Wealth’s clients in that: 1.1. Active Wealth operated as an independent financial advice company, authorised by the Financial Conduct Authority. 1.2. Following pensions advice from Active Wealth, at least 288 clients transferred funds totalling at least £23,163,962 from their existing pensions to Self Invested Personal Pensions (“SIPPs”) from which their funds were invested in ‘Portfolio Six’, a portfolio of investments in corporate bonds that: 1.2.1. Were described as ‘alternative’, ‘non-correlated’, ‘niche’, ‘relatively illiquid’ and ‘unregulated’. 1.2.2. Promotional documents for the investments within the Portfolio contained warnings that the bonds and the income from them would be at risk and that investors could lose some or all of the funds invested. 1.2.3. Were only available to Certified High Net Worth Investors, Sophisticated Investors, Self-Certified Sophisticated Investors, Certified Restricted Investors, Professional Investors or individuals who had received professional advice from an independent financial adviser in who had completed a declaration of appropriateness to ensure the clients had the necessary experience and knowledge in order to understand the risks involved in relation to the product or service offered. 1.2.4. Were not protected by the Financial Services Compensation Scheme. 1.3. An analysis of a sample of 29 of Active Wealth’s clients who invested in Portfolio Six, for whom 21 client files are held, shows that: 1.3.1. 20 clients had a ‘very limited’ or ‘moderate’ knowledge of investment matters. 1.3.2. 18 clients classed their attitude to financial risk as ‘more risk averse’, ‘somewhat risk averse’ or ‘neither risk averse nor a risk taker’. 1.3.3. 11 clients had transferred funds to the Portfolio from existing defined benefit pension schemes that had safeguarded benefits which were protected by the Pension Protection Fund. 1.4. He states Active Wealth carried out rigorous due diligence in order to ensure that the products it selected for recommendation were appropriate. 1.5. Despite the due diligence documents concluding that the investment portfolio was suitable for Active Wealth’s retail investors, it was not impartial and independent as it had been compiled by a discretionary fund management company of which the directors were also former directors of the underlying investment companies within Portfolio Six. 1.6. The due diligence documents also declared: 1.6.1. That investors’ funds would be loaned by the investment bond companies to ‘operator’ companies of which some of their assets were located in Dubai, the USA, Cape Verde and Gibraltar. 1.6.2. There was no secondary market to trade the bonds. 1.6.3. There were conflicts of interests within the structure of the parent company and the underlying investment companies. 1.6.4. Risk assessment scenarios which stated that bondholders may not get back all the capital invested as well as the accrued interest. 1.7. He also made inaccurate declarations in clients’ applications for the Portfolio Six investments in relation to their level of investment experience and appetite for financial risk which were submitted to the discretionary fund management company that managed the Portfolio Six investments. 1.8. Active Wealth entered voluntary liquidation on 05 February 2018. As a result, Active Wealth’s clients have claimed a total of £10,115,242 in compensation from the Financial Services Compensation scheme (“FSCS”) as a result of pensions and/or investment advice received from Active Wealth. However, clients’ individual claims to the FSCS are limited to £50,000 and therefore the actual loss suffered by Active Wealth’s clients currently stands at £24,262,837 (with a further 134 claims due to be assessed). 1.9. Of the total loss suffered by Active Wealth’s clients, at least £7,396,953 is owed to 113 individuals who invested in Portfolio Six (with a further 13 claims due to be assessed). 

This information is correct as at 10 / 9 / 2021

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