Release Date: 13th February 2024
To access the original FCA document, click here.
Summary
Floris Jakobus Huisamen has been fined £31,800 and prohibited from performing any function in relation to regulated activities by the Financial Conduct Authority (FCA). This action stems from his misconduct while serving as a director responsible for Risk and Compliance at London Capital & Finance plc (LCF) between February 2017 and December 2018.
Reasons for the FCA Fine:
- Non-Compliance with Financial Promotion Rules: During his tenure, Mr Huisamen signed off on numerous financial promotions, including Information Memoranda, brochures, and website content, knowing they potentially violated the FCA’s rules requiring that promotions be fair, clear, and not misleading.
- Lack of Integrity: Mr Huisamen’s reckless behaviour and failure to ensure compliance with the financial promotion rules demonstrated a lack of integrity, posing a risk to consumers and the integrity of the UK financial system.
- Historical Context: Prior to LCF’s authorization in June 2016, Mr Huisamen was involved in drafting and approving financial promotions that needed approval from an authorised person, indicating a longstanding pattern of involvement in non-compliant practices.
Key Takeaways for Other Firms:
- Ensure Compliance with Promotional Rules: Firms must ensure that all financial promotions are fair, clear, and not misleading, adhering strictly to the FCA’s Conduct of Business Sourcebook (COBS).
- Rigorous Approval Processes: Implement stringent checks and balances in the approval process for financial promotions to avoid regulatory breaches.
- Integrity in Leadership: Senior managers and directors must act with integrity and ensure compliance with regulatory standards to protect consumers and maintain market integrity.
- Consequences of Misconduct: Understanding the severe consequences of non-compliance and misconduct, including financial penalties and prohibition from regulatory activities.
Conclusion
The FCA’s action against Floris Jakobus Huisamen underscores the importance of regulatory compliance and integrity in financial promotions. Firms and their directors must adhere to strict standards to protect consumers and maintain the integrity of the financial system, ensuring that all promotional materials are compliant with regulatory requirements to avoid severe penalties and reputational damage.
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