Regulation  

Arch punishments by FCA upheld by tribunal

Arch punishments by FCA upheld by tribunal

The FCA’s decision to fine and ban two Arch Financial Products executives in relation to alleged conflicts of interest has been upheld in a tribunal.

According to a statement from the FCA, the Upper Tribunal upheld a decision by the City watchdog to issue a public censure against Arch and to ban both its chief executive Robin Farrell and senior partner and former compliance officer Robert Addison from performing any role in regulated financial services.

Mr Farrell and Mr Addison were fined £650,000 and £200,000 respectively.

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The judgement, which was issued on 19 January 2015 after a hearing in May 2014, found that Arch, Mr Farrell and Mr Addison were reckless as to whether they had managed the conflicts of interest in four specific transactions fairly and that they therefore lacked integrity.

It also found that they failed to ensure Arch adequately identified and took appropriate steps to mitigate and record conflicts of interest in the business.

The judgement remains open to the parties to appeal.

FCA view

Georgina Philippou, acting director of enforcement and market oversight for the FCA, said: “The judgment is a further reminder to those who work in financial services that they have to act with integrity, and that when they don’t, we will take action to remove them from the industry.”