A financial executive is facing sanctions from the U.K.’s Financial Conduct Authority (FCA) for allegedly failing to report that he was previously investigated by the U.S. Financial Industry Regulatory Authority Inc. (FINRA).
The regulator imposed a £99,600 fine on Carlos Ricardo Fuenmayor, chief executive of BancTrust Investment Bank Ltd., for allegedly failing to make disclosures to the FCA about past entanglements with other regulators.
Specifically, the FCA alleged that between 2017 and 2019, there were three events that should have been disclosed — including the launch of a FINRA investigation, the imposition of sanctions by FINRA in a settlement (a 15-month suspension and US$20,000 fine), and the freezing of his bank accounts by the Venezuelan National Financial Intelligence Unit.
However, the FCA said Fuenmayor didn’t disclose the FINRA incidents until 2021, and didn’t report the NFIU action until 2023, which undermined the regulator’s ability to assess his ongoing fitness for approval in the U.K., and allegedly breached its principles and conduct rules.
“Disclosing information which we reasonably expect, and doing it promptly, is key to maintaining trust in financial services and supporting a strong market that works well for consumers,” said Therese Chambers, executive director of enforcement and market oversight at the FCA, in a release.
Fuenmayor is appealing the FCA’s decision to the Upper Tribunal. As a result, the FCA’s initial findings and sanctions should be considered provisional.