Regulatory Roundup 28 contained an article on the fine imposed upon ActivTrades for client money failings. The FSA action arose following an FSA thematic visit and consequent s166 skilled person report.
In a follow up the FSA has also issued a Final Notice in respect of the firm’s compliance officer David McGrath.
In addition to a financial penalty of £3,000 (reduced for early settlement and because of financial hardship) the Regulator also issued Mr McGrath with a Prohibition Order. The effect of this is to prohibit him from performing the CF10 compliance oversight function.
This serves as a reminder that where the FSA finds failings the regulator may take action against not only the firm concerned but also individuals. As the Final Notice explains, “the FSA places great importance on the responsibilities of compliance officers as they are responsible for ensuring that the businesses that they oversee comply with regulatory requirements and standards”.
Amongst the failings quoted were an inability to demonstrate an appropriate knowledge of the relevant part of the Handbook; a failure to put in place adequate policies and procedures; a failure to provide the Board with regular management information; and not identifying the regulatory failings through his own compliance monitoring.
