Thursday, 11 October 2018 10:49

Sex offender adviser’s firm goes into administration

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Frank Cochran Frank Cochran

Convicted sex offender Frank Cochran’s advisory firm has slumped into administration, according to the FCA register.

The recent update to the register listed Wolverhampton-based FSC Investment Services as “authorised - in administration.”

It added: “This is a firm that has stopped taking on new business but is still authorised and has to continue to meet our standards in dealing with its customers.

“This firm has requirements or restrictions placed on the financial services activities that it can operate. 

“Requirements or restrictions can include suspensions.”

  

It went on to list a number of conditions the faltering firm must keep.

These included the fact that it “must cease all regulated activities.”

It continued: “Under section 55L of FSMA, the following requirement is included in the firm's permission so that the firm must immediately cease all regulated activities until such time as the FCA has approved persons to carry on the required functions of CF1 (director), CF10 (compliance oversight) and CF11 (money laundering reporting).”

Under the heading of ‘asset retention’ the FCA also stipulated that, also under section 55L of FSMA, the company “must not in any way dispose of, deal with or diminish the value of any of its assets without the prior consent of the FCA.”

It added: “This requirement does not prohibit the firm from dealing with or disposing of any of its assets in the ordinary and proper course of business.

“For the avoidance of doubt, the following would not be in the ordinary and proper course of business for these purposes: 


“a) the making of any capital distribution; 


“b) the sale of the firm's client bank; 


“c) the payment of unusual or significant amounts to the firm's shareholders, employees, officers or any persons connected thereto; 


“d) the making of any gift or any significant loan by the firm to any party; and 


“e) the entry into any financial reconstruction or organisation.”

The firm must also “comply with the requirements in regulation 4C (or any successor provision) of The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007.”

The latest twist in the saga came following the quick fire resignations of the firm’s two previous directors; Dale Rathbone and Blair Dunsmuir.

According to Companies House documents, dated 30 August, control of the firm then reverted back to Frank Cochran as director despite him still being in prison.

High-profile company founder and majority shareholder, Mr Cochran, was jailed for seven years in April after being found guilty of a string of offences, including sexual assault by penetration, using controlling and coercive behaviour and putting a person in fear of violence by harassment.

He also previously pleaded guilty to owning a Taser stun-gun he bought on holiday in Florida.

Mr Cochran once served a large number of affluent clients, including celebrities and professional footballers.

He had also featured on TV interviews with Sky, ITV and CNN and was publicising seminars until months before his imprisonment.

At the time of Mr Cochran’s sentencing the firm employed 13 people.

 

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Last modified on Thursday, 11 October 2018 11:07
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