Allen was sole shareholder of NMB, a mortgage intermediary, while holding controlled functions at another firm offering equity release mortgage products, New Life.
Between 2009 and 2013 he made illegitimate transfers totalling £1m from New Life to NMB without the knowledge of the other New Life directors.
Allen also fabricated an exchange of emails between himself and another director claiming to authorise one of the transactions and falsified a bank statement in order to mislead New Life’s auditors.
Georgina Philippou, acting director of enforcement and market oversight at the FCA, said: “Mr Allen failed to act with honesty and integrity.
“He stole money in order to prop up his failing business and then lied in order to cover up his deception.
“It is essential that those who hold important roles in financial services can be trusted and so we have banned Mr Allen.”
Allen would have been fined £248,500 had he not provided evidence that any financial penalty would cause him serious financial hardship.
