Release Date: 5th June 2013
To access the original FCA document, click here.
Summary
Christopher John Riches was fined £63,000 by the Financial Conduct Authority (FCA) for breaches of Principles 1 (Integrity) and 11 (Relations with regulators) of the FCA’s Principles for Businesses, as well as violations of section 20 of the Financial Services and Markets Act 2000. Riches, previously authorised to conduct regulated home finance and insurance mediation business, was found to have deliberately conducted regulated activities without the requisite Professional Indemnity Insurance (PII), despite being explicitly instructed to cease all regulated activities. Additionally, he submitted false information regarding his PII cover and failed to cooperate with the FCA.
Riches’ authorisation was cancelled, and he was prohibited from performing any functions related to regulated activities, reflecting the FCA’s judgement of his lack of honesty and integrity. These actions were taken to mitigate the risk he posed to consumers and to maintain confidence in the financial system.
Key takeaways for other firms and individuals from this case include:
- The critical importance of adhering to regulatory requirements and the severe consequences of misleading regulatory bodies.
- Ensuring compliance with all operational prerequisites like PII.
- Maintaining open, honest communications with regulators are essential.
Additionally, this case underscores the importance of heeding regulatory warnings and instructions to avoid punitive actions and reputational damage.
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