Release Date: 16th May 2022
To access the original FCA document, click here.
Summary
The FCA has fined Tristan Freer £42,898 and prohibited him from performing any function related to regulated activities due to breaches of the FCA’s principles.
Reasons for the Fine:
Mr Freer, who held multiple controlled functions (Director CF1, Compliance Oversight CF10, Money Laundering Reporting CF11, and Customer CF30) at Bank House Investment Management Limited (BHIM), was found to have acted dishonestly and recklessly between 9 September 2014 and 12 December 2016. The FCA determined that Mr Freer’s actions demonstrated a lack of integrity, rendering him unfit to perform regulated activities. Specifically, his conduct involved dishonesty and recklessness in his controlled functions at BHIM’s pension advice business.
The FCA’s investigation revealed that Mr Freer’s behaviour breached Statement of Principle 1 (Integrity) of the FCA’s Statements of Principle for Approved Persons. Consequently, the FCA decided to impose both a financial penalty and a prohibition order on Mr Freer.
Mr Freer referred the decision to the Upper Tribunal, which upheld the FCA’s decision and directed the FCA to impose a financial penalty of £42,525, plus interest on the amount of the financial benefit received by Mr Freer derived directly from his breaches. The total financial penalty imposed by the FCA amounted to £42,898, including interest. The Tribunal dismissed Mr Freer’s appeal against the prohibition order, affirming that he lacks the integrity required to be considered a fit and proper person for regulated activities.
Key Takeaways:
- Integrity is Critical: Individuals in controlled functions must act with honesty and integrity, particularly when dealing with client assets and financial advice.
- Compliance with Regulations: Adherence to FCA principles and maintaining the necessary standards of conduct is mandatory.
- Transparency and Reporting: Clear and honest communication with the FCA is essential to avoid severe penalties.
- Preparedness for Audits and Investigations: Firms should be ready for FCA scrutiny and ensure all activities comply with regulatory standards.
Conclusion:
The FCA’s action against Tristan Freer underscores the importance of maintaining integrity and compliance within financial services. Firms and individuals must adhere to FCA regulations and principles to ensure the protection of consumers and the stability of the financial system. This case serves as a warning and reminder of the severe consequences of dishonest and reckless behaviour in the financial industry.
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