Terence Potter, a former partner at EY, is currently serving eight years in prison for setting up and promoting a number of fraudulent schemes to wealthy professionals.

A five-year investigation by HMRC found that Potter along with other professionals devised and promoted the multi-million pound fraud to claim tax rebates linked to contrived investments in film-making partnerships. The group claimed to have spent £5.7m and made significant losses on two UK film projects, but HMRC investigators discovered a series of suspicious tax rebate claims, supported by faked invoices, account records and bogus diary entries.

An FCA final notice says that Potter did not respond to a decision notice prohibiting him from performing any function in relation to any regulated activity within the 28-day deadline. Subsequently, the final notice from the regulator sees him banned from all regulated activity from 25 May.

The FCA said: ‘The Authority has concluded, on the basis of the facts and matters and conclusions described in the Warning Notice, and in the Decision Notice, that Mr Potter is not a fit and proper person to perform any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm, as his conduct demonstrated a serious lack of honesty and integrity.’

The FCA's final notice is here. 

Report by Amy Austin