In one of its latest enforcement actions, the FCA says it has “fined Mr Kristo Käärmann, the CEO of Wise plc and senior manager of Wise Assets UK Ltd, £350,000 ($455,000) for breaching a senior manager conduct rule.”
According to a press release by the regulator: “In February 2021, Mr Käärmann paid a significant fine to HM Revenue & Customs (HMRC) of £365,651 ($474,863). He was fined for deliberately failing to notify HMRC of a capital gains tax liability after he sold shares worth £10m ($13) in 2017. In September 2021, HMRC subsequently added Mr Käärmann to their public tax defaulters list.”
The press release adds that, “these matters, including the circumstances surrounding them, were relevant to the FCA’s assessment of Mr Käärmann’s fitness and propriety. Mr Käärmann failed to appropriately consider the significance of the tax issues and notify the FCA, despite being aware of them for over 7 months.”
In a separate enforcement action, the FCA has said it has “banned Steven Hodgson and Paul Adams of Vintage Investment Services (Vintage) from advising any customers on pension transfers and opt outs.”
A press release by the regulator says: “Mr Hodgson and Mr Adams poorly advised people to transfer out of defined benefit pension schemes, including the British Steel Pension Scheme (BSPS).”
Both individuals have also been banned “from holding any senior management function in a regulated firm.”
“In addition, Mr Hodgson and Mr Adams will pay £32,700 ($42,466) and £53,200 ($69,089) respectively to the Financial Services Compensation Scheme (FSCS) to contribute towards redress owed to Vintage customers,” the press release says.
Elsewhere, the FCA has announced that “PSG SIPP Limited (PSG SIPP) went into administration on 25 October 2024.”
The regulator has also said that “Christopher Allen and Adam Stephens of Evelyn Partners have been appointed as joint administrators.”
Also, “All SIPP schemes administered by PSG SIPP, except Unity SIPP, have been transferred to the regulated SIPP operator, Alltrust Services Limited (Alltrust).”
“Evelyn Partners and Alltrust will communicate next steps to customers holding SIPPs previously administered by PSG SIPP,” the FCA has said.
Media and speeches
Nikhil Rathi, FCA Chief Executive, delivered a speech at the Investment Association Annual Dinner, Mansion House, on 29 October 2024. Highlights were:
- Private markets are growing. The FCA supports this growth as part of ensuring a range of financing options for companies, and the competitiveness of UK investment management.
- We must embrace innovation to boost competitiveness, whilst understanding in detail the risks.
- This requires greater transparency and collaboration, as part of broader conversations on resetting the UK’s risk boundaries.
Also, the FCA and PSR Boards have said they have “appointed Alison Potter as chair of the FCA’s Regulatory Decisions Committee (RDC) and the PSR’s Enforcement Decisions Committee (EDC).”
In a press release the regulator has said: “The new appointment has been made ahead of the existing chair, Tim Parkes, standing down later this year. Alison Potter will begin on 1 November 2024, with a short transitional period alongside Tim Parkes.”
“These two committees are responsible for taking certain regulatory decisions on behalf of the FCA and the PSR. Committee members are selected based on their ability to make independent decisions grounded in evidence and experience,” the press release says.
And lastly, the FCA has “welcomed Project Guardian’s first industry report on tokenisation in the asset management sector, delivered through Project Guardian’s asset and wealth management workstream.”
A press release by the FCA says: “Project Guardian is an international collaboration of industry and regulators, led by the Monetary Authority of Singapore, that explores the use of fund and asset tokenisation.
“We will continue working with Project Guardian members and the sector to support the development and adoption of asset tokenisation.”
