FCA and PRA Publish Decision Notices Given to Former CEO

The FCA and the Prudential Regulation Authority (PRA) have banned and fined the former CEO of a small mutual insurer. Stuart Malcolm Forsyth was fined £78,318 and £76,180 respectively by the FCA and PRA.

Between February 2010 and July 2016, it is stated that Mr Forsyth transferred “excessive amounts of his own remuneration to his wife to reduce his own tax liability and took steps to conceal that arrangement”. Following a joint investigation by the FCA and PRA he was judged to have “acted without integrity to his financial benefit”.

Mr Forsyth has referred the Decision Notices to the Upper Tribunal and the parties will present their respective cases there.

Any findings in the Decision Notices are provisional.

The Senior Managers and Certification Regime (SM&CR) comes into effect for FCA solo-regulated firms very soon on the 9th of December 2019. Cases like this highlight the continued interest of the regulator in incidences of misconduct – both financial and non-financial.

About the author

Ash is Managing Director at RWA. He has over 15 years’ experience in the legal and compliance field and ten years in broker sales and leadership roles in national and global insurance firms.

He is highly skilled in the application of risk-based regulation, working closely with businesses at executive and board level to develop commercially viable, compliant systems and controls. Ash is adept in providing solutions-based interpretations of the FCA’s technical standards and facilitating the transfer of compliance skills and education needed for businesses to self-manage their own compliance and training needs.

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