The FCA has fined Kristo Käärmann, CEO of Wise, the global payments technology firm, £350,000 for failing to notify the regulator of significant personal tax issues.
The FCA issued the fine after determining that Mr Käärmann was in breach of Senior Management Conduct Rule 4, which states: 'You must disclose appropriately any information of which the FCA would reasonably expect notice.'
In February 2021, Mr Käärmann paid a significant fine to HMRC of £365,651 for deliberately failing to notify HMRC of a capital gains tax liability after he sold shares worth £10m in 2017. He was also added to HMRC’s public tax defaulters list.
Mr Käärmann failed to appropriately consider the significance of the tax issues and notify the FCA as these matters, including the circumstances surrounding them, were relevant to the FCA’s assessment of Mr Käärmann’s fitness and propriety.
Reducing harm and strengthening market integrity
Therese Chambers, Joint Executive Director of Enforcement and Oversight said:
“We, and the public, expect high standards from leaders of financial firms, including being frank and open.
It should have been obvious to Mr Käärmann that he needed to tell us about these issues which were highly relevant to our assessment of his fitness and propriety.”
The FCA’s Senior Managers and Certification Regime aims to reduce harm to consumers and strengthen market integrity by creating a system that enables firms and regulators to hold people to account.
Be confident with ITC
Whilst this is an extreme case, ITC takes this opportunity to remind network members to disclose promptly to ITC, as your principal firm, anything that may bring into question the fitness and propriety of the Approved Persons at our Appointed Representatives.