On August 17th, the Upper Tribunal ordered the Financial Conduct Authority (FCA) to reassess the penalty imposed on a mortgage company director. The director had been fined £50,000 for failing to ensure that the company’s activities were conducted in accordance with the FCA’s Principles for Businesses.
The FCA had imposed the penalty on the director in December 2018, finding that he had failed to ensure that the company’s activities were conducted in accordance with the FCA’s Principles for Businesses. The director appealed the decision to the Upper Tribunal, arguing that the penalty was disproportionate and that the FCA had not taken into account mitigating factors.
The Upper Tribunal agreed with the director and ordered the FCA to reassess the penalty. The Tribunal noted that the director had taken steps to improve the company’s compliance with the FCA’s Principles for Businesses and that he had cooperated fully with the FCA’s investigation. The Tribunal also noted that the director had not personally benefited from any of the company’s activities and that he had acted honestly and diligently.
The decision of the Upper Tribunal is a reminder that the FCA must take into account all relevant factors when imposing penalties. The decision also highlights the importance of appealing decisions if they are felt to be unfair or disproportionate.
The case serves as a warning to other directors and companies that they must ensure their activities comply with the FCA’s Principles for Businesses. Directors should also ensure that they cooperate fully with any FCA investigation and take steps to improve any areas of non-compliance. Finally, if a penalty is imposed, directors should consider appealing if they feel it is unfair or disproportionate.