FCA Bans Broker

The FCA last week banned a former Martins Brokers Ltd broker, Terry Farr, for acting dishonestly and without integrity. According to the regulator, Mr Farr is, as a result, “not fit and proper to perform any function in relation to any regulated activity.”

It was found that between September 2008 and August 2009, Mr Farr arranged nine wash trades. The purpose of these was obtaining unwarranted brokerage payments for Martins, but for no legitimate purpose.

Wash trades are defined in the FCA’s Handbook as “a sale or purchase of a qualifying investment where there is no change in beneficial interest or market risk, or where the transfer of beneficial interest or market risk is only between parties acting in concert or collusion, other than for legitimate reasons”. They are considered to be a form of market abuse.

According to the Executive Director of Enforcement and Market Oversight at the FCA, Mark Steward, “There was no legitimate reason for Mr Farr to make these trades and his actions were motivated by greed. His actions mean he has no place in financial services.”

The ban “reflects our [the FCA’s] commitment to making sure that people working in financial services act with integrity.”

The final decision notice can be viewed here.

About the author

Lisa joined RWA in 2014 as an e-Learning Assistant, designing training material for the Aviva Development Zone learning platform.

Her role as Professional Standards Manager involves the creation and review of e-learning content as well as providing proofreading, copywriting and standards support across the business.

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