FSA

A need to ‘demonstrate the strongest set of morals, ethics and integrity at all times’

Following a recent investigation into an incident concerning of someone who held the controlled function roles of head of compliance and money laundering reporting officer, the FSA would like to remind those working in the financial sector that lack of integrity and/or participating in events either professionally or in their personal lives which could bring the industry into disrepute can and will have dire consequences on their careers.

The investigation into the officer’s activities concluded:-

  • deliberately altering (reduced in value) a total of three estate agent property valuations for the family home (“the Altered Valuations”), such valuations being required by the Court;
  • deliberately forwarding the Altered Valuations to their then legal representative knowing that those Altered Valuations would be used in court proceedings;
  • deliberately signed a witness statement exhibiting the Altered Valuations, knowing that their statement was untrue by virtue of their knowledge that they had altered the valuations contained therein; and
  • deliberately relied upon the Altered Valuations in sworn evidence in those proceedings thereby misleading the Court, which led to criminal proceedings being brought against them.

The FSA in their statement have issued the following Key Learning Points for the Industry:-

  • The Authority expects any individual who is employed or engaged in a position of responsibility within the regulated sector to demonstrate the strongest set of morals, ethics and integrity at all times. For the avoidance of any doubt, the Authority does not draw any distinction between dishonest actions that demonstrate a lack of integrity in the work place and dishonest actions that demonstrate a lack of integrity in an individual’s private life not associated with their role(s) within the regulated sector.
  • Where the Authority identifies that an individual who is employed or engaged in a position of responsibility within the regulated sector has committed dishonest actions it will give cause for the Authority to assess the seriousness of those actions and to consider whether those actions demonstrate that the individual lacks integrity. Where an individual is deemed to lack integrity the Authority will consider whether to impose a prohibition.

Find the IOMFSA’s press release here.