The Financial Conduct Authority (FCA) has decided to fine Carlos Fuenmayor, Chief Executive of BancTrust, £99,600 for failing to disclose three separate matters to the UK regulator. The FCA concluded that these failures were negligent and prevented it from fully considering his fitness and propriety.
According to the FCA, Mr Fuenmayor did not inform the regulator, including in application forms he submitted on behalf of BancTrust, that he had been placed under investigation by the US Financial Industry Regulatory Authority in December 2017. He also failed to disclose that FINRA had subsequently sanctioned him in June 2019. These matters were not disclosed to the FCA until December 2021.
The FCA further stated that Mr Fuenmayor did not disclose that, shortly before an inspection in November 2019, the National Financial Intelligence Unit of Venezuela had frozen his local currency bank accounts. The freeze also applied to the accounts of his Venezuelan companies and their directors. This information was not shared with the FCA at the relevant time.
Regulatory findings and conduct rules
The FCA found that Mr Fuenmayor's failure to disclose these issues meant the regulator did not have the opportunity to fully assess his fitness and propriety or seek additional information. The FCA determined that his conduct was negligent and that he breached APER Statement of Principle 4 and Senior Manager Conduct Rule 4.
These rules require individuals to disclose appropriately any information that the FCA would reasonably expect to receive. The regulator emphasised that timely and complete disclosure is a key obligation for senior managers in authorised firms.
FCA commentary and next steps
Therese Chambers, executive director of enforcement and market oversight at the FCA, said: "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."
Mr Fuenmayor has referred the FCA's Decision Notice to the Upper Tribunal, where both he and the FCA will present their cases. The Upper Tribunal will determine the appropriate outcome of the matter.
