A married couple who were directors of an independent financial advice company have been disqualified from acting as company directors for a total of 10 years after an Insolvency Service investigation found that the couple were taking assets from an insolvent company
Kevin Gerald Neal, and his wife, Cheryl Neal, have been banned from acting as company directors for 6 and 4 years respectively, due to their misconduct in Kevin Neal Associates Wealth Management LLP.
The finance company had been incorporated to take over the wealth management business of Kevin Neal Associates Limited which went into compulsory liquidation on 1 July 2013.
By a deed poll and declaration, Kevin Neal Associates Wealth Management became liable, amongst other liabilities, for any award of the Financial Ombudsman Service against Kevin Neal Associates Limited.
By May 2014, at least six decisions by the Financial Ombudsman Service, totalling £573,274, had gone against Kevin Neal Associates Limited and Kevin Neal Associates Wealth Management.
The company’s previous insurer refused to settle the claims and the Financial Conduct Authority (FCA) had altered Kevin Neal Associates Wealth Management’s permissions to ensure that it did not transfer away assets without its permission.
Despite this, between May and June 2014, Kevin Neal Associates Wealth Management transferred £55,000 and two cars worth £22,120 to associated parties.
Mark Bruce, chief investigator for the Insolvency Service, said: ‘This is a particularly blatant example of common misconduct seen by the Insolvency Service.
‘Mr and Mrs Neal plainly acted to improve their position, once the partnership was insolvent, while failing to honour either the prior decisions of the Financial Ombudsman or the protections put in by the FCA, specifically to stop such actions. Such conduct will invariably lead to disqualification.’
Report by Amy Austin
