The UK's financial regulatory body, the FCA, has fined Gracechurch Investments' ex-CEO Sam Kenny £450,000 over misselling.

The UK's Financial Conduct Authority has fined former chief executive Sam Kenny £450,000 (over $666,000) for Gracechurch Investments' misselling, and banned him from working in the industry again.

Kenny himself used pressure-selling techniques as the now-dissolved stockbroking firm missold small-cap stocks between 2008 and 2009, according to the FCA. When the watchdog asked for a recording of a non-compliant sales call, Kenny did not offer it up and misled them with regards to how Gracechurch managed a conflict of interest with its clients, the regulator said.

“Mr Kenny has now been held to account for Gracechurch’s misselling and the lack of integrity in his dealings with the Authority. This significant fine and ban sends a strong message to those who run financial services firms, that they will be made to answer for misconduct and that we will take particularly seriously attempts to cover up misconduct by trying to mislead us with false information,” the FCA's acting director of enforcement and market oversight, Georgina Philippou, said in a statement.

For over a year and a half, Gracechurch advised around 340 clients to buy about £4 million of shares in small-cap companies, which were not listed on the main market.

A review of the firm's calls showed that its brokers repeatedly ignored some clients' refusal to buy stock and dismissed requests for information on the risky investments.

“This all happened while Kenny was chief executive of Gracechurch,” the FCA said.

The FCA said it would have fined Gracechurch Investments £1.5 million when it decided to take enforcement action back in 2012, but that it did not proceed given the firm was in insolvent liquidation and had no assets.