Syed Rahman Warns Regulated Individuals about Failing to Report Misconduct

With the Financial Conduct Authority (FCA) fining  a chief executive £350,000, Syed Rahman emphasised the importance of being transparent in reporting potential misconduct.

Law360 asked Syed for his thoughts about the fine imposed on Kristo Käärmann, the chief executive of money transfer company Wise, for not notifying the FCA of penalties imposed on him by HM Revenue and Customs.

With the move indicating that the FCA is taking a robust approach to personal conduct, Syed explained the importance of regulated individuals meeting their reporting obligations.

He said: "Regulated individuals cannot expect to be able to sweep anything unpleasant under the carpet and expect it to go undiscovered. The FCA exists to ensure the financial sector functions as it should do."

Syed added that although the scope of conduct the FCA will consider is broadening, it is too early to say whether the case of Kristo Käärmann is a one-off or a growing sign of "aggressive" enforcement action by the regulator.

But he said: “Whether or not that is the case, senior managers should not be taking risks when it comes to their conduct.’’

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