Release Date: 14th December 2018
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has banned Angela Burns from acting as a non-executive director (NED) and fined her £20,000 for failing to act with integrity at two mutual societies. Angela Burns, an experienced UK investment professional and chief executive of her own investment consultancy, served as a NED and chair of the investment committees at two mutual societies from January 2009 to May 2011. While these societies were seeking investment manager services, Ms Burns provided advice while simultaneously soliciting work from Vanguard Asset Management Limited (Vanguard) without disclosing this to the boards.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, emphasised the duty of directors to disclose or avoid conflicts of interest. Ms Burns’ failure to disclose her concurrent solicitation of consultancy work from Vanguard while advising the mutual societies was deemed inappropriate and inconsistent with the standards of integrity expected from senior managers.
Ms Burns breached FCA Statement of Principle 1 by:
- Participating in discussions about Vanguard at the mutual societies without disclosing her solicitation of consultancy work from Vanguard.
- Referring to her NED positions at the mutual societies while soliciting work from Vanguard, giving the impression of providing impartial advice.
The FCA’s decision follows Ms Burns’ referral of the Decision Notice to the Upper Tribunal, her appeal to the Court of Appeal, and the Supreme Court’s denial of her application for permission to appeal.
Key Takeaways for Other Firms:
- Disclosure of Conflicts of Interest: Always disclose any potential conflicts of interest to the board to ensure transparency and appropriate handling.
- Integrity in Advisory Roles: Maintain integrity by avoiding actions that could undermine impartiality or appear to leverage positions for personal gain.
- Compliance with Regulatory Standards: Adhere strictly to regulatory standards and principles to maintain trust and credibility in advisory roles.
In conclusion, the FCA’s action against Angela Burns highlights the critical importance of integrity and transparency for directors and senior managers in their advisory roles to maintain trust and uphold regulatory standards.
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