Release Date: 9th February 2016
To access the original FCA document, click here.
Summary
Achilles Othon Macris was fined £792,900 by the FCA for failing to comply with Statement of Principle 4, which requires dealing with the Authority in an open and cooperative manner. Macris was the Head of CIO International at JPMorgan Chase Bank, N.A., during the period from 28 March 2012 to 29 April 2012, and he failed to disclose critical information about the Synthetic Credit Portfolio (SCP) during a time of substantial losses.
Reasons for the Fine:
- Non-Disclosure of Issues: Macris failed to inform the FCA of significant issues and breaches within the SCP during crucial meetings and calls.
- Misleading Information: He did not correct or provide the full extent of SCP’s problems, including breaches of risk limits, substantial losses, and the implementation of heightened measures to address these issues.
- Negligent Behaviour: His actions were considered negligent as he failed to provide necessary updates that the FCA would reasonably expect to receive.
Key Takeaways for Other Firms:
- Transparency with Regulators: Always provide complete and accurate information to the FCA, especially during periods of significant operational difficulties.
- Timely Reporting: Inform the FCA promptly about any breaches, substantial losses, or changes in risk management strategies.
- Internal Controls: Ensure robust internal communication and control systems to avoid misinformation or omission of critical details.
Conclusion:
The FCA’s action against Macris underscores the importance of openness and transparency in dealings with regulators. Firms and individuals in senior positions must adhere to these principles to maintain the integrity of the financial system and avoid severe penalties.
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