Release Date: 8th April 2016
To access the original FCA document, click here.
Summary
Timothy Alan Roberts was fined £450,000 by the Financial Conduct Authority (FCA) and prohibited from performing any function related to regulated activities. The FCA’s action was based on findings that Roberts, as a Director of Catalyst Investment Group Limited, acted without integrity and failed to exercise due skill, care, and diligence, thus breaching Statements of Principle 1 and 6.
Reasons for the Fine:
- Lack of Integrity: Roberts disregarded the requirement for ARM to be authorised and ignored the difficulties in ARM’s application, misleading Catalyst personnel about meetings with the CSSF. He also failed to consider investors’ interests when authorising payments.
- Failure of Due Diligence: Despite being informed of concerns by the FCA, Roberts resisted ceasing the promotion of ARM bonds, showing a disregard for regulatory requests and investor protection.
Key Takeaways for Other Firms:
- Maintain Integrity: Ensure transparency and honesty in all communications and dealings, especially concerning regulatory requirements and investor information.
- Exercise Due Diligence: Always consider investors’ interests and comply promptly with regulatory requests to halt promotions or activities that may not meet compliance standards.
- Effective Oversight: Directors and senior managers must actively oversee and address any issues related to authorisation and regulatory compliance to avoid misleading actions.
Conclusion:
The FCA’s action against Timothy Alan Roberts highlights the critical importance of integrity and due diligence in regulatory compliance. Firms must uphold these principles to protect investors and maintain market confidence, avoiding severe penalties and prohibitions.
