Release Date: 16th May 2022
To access the original FCA document, click here.
Summary
The FCA has fined Robert Ward £88,100 and prohibited him from performing any function related to regulated activities due to breaches of the FCA’s principles.
Reasons for the Fine:
Mr Ward, who held the roles of Director (CF1) and Chief Executive (CF3) at Bank House Investment Management Limited (BHIM), was found to have acted without integrity between 16 October 2014 and 12 December 2016 in relation to BHIM’s pension advice business. The FCA determined that Mr Ward’s actions demonstrated a lack of integrity, rendering him unfit to perform regulated activities. Specifically, his conduct involved dishonesty and recklessness in his controlled functions at BHIM.
The FCA’s investigation revealed that Mr Ward’s behaviour breached Statement of Principle 1 (Integrity) of the FCA’s Statements of Principle for Approved Persons. As a result, the FCA decided to impose both a financial penalty and a prohibition order on Mr Ward.
Mr Ward referred the decision to the Upper Tribunal, which upheld the FCA’s decision and directed the FCA to impose a financial penalty of £88,100. The Tribunal dismissed Mr Ward’s appeal against the prohibition order, affirming that he lacks the integrity required to be considered a fit and proper person for regulated activities.
Key Takeaways:
- Integrity is Critical: Individuals in controlled functions must act with honesty and integrity, particularly when dealing with client assets and financial advice.
- Compliance with Regulations: Adherence to FCA principles and maintaining the necessary standards of conduct is mandatory.
- Transparency and Reporting: Clear and honest communication with the FCA is essential to avoid severe penalties.
- Preparedness for Audits and Investigations: Firms should be ready for FCA scrutiny and ensure all activities comply with regulatory standards.
Conclusion:
The FCA’s action against Robert Ward underscores the importance of maintaining integrity and compliance within financial services. Firms and individuals must adhere to FCA regulations and principles to ensure the protection of consumers and the stability of the financial system. This case serves as a warning and reminder of the severe consequences of dishonest and reckless behaviour in the financial industry.
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