FCA bans three individuals for non-financial misconduct

The FCA has issued final notices to three individuals, prohibiting them from working in the financial services industry, following findings that they are not fit and proper after being convicted of serious non-financial offences. These orders were made pursuant to section 56 of FSMA, which provides that the FCA may make a prohibition order if it appears that an individual is not a fit and proper person to perform functions in relation to a regulated activity. No other rule breaches are referenced in the final notices.

The three final notices are very similar in format, with the FCA remarking in each one that the relevant individual was "not fit and proper because he lacks the necessary integrity and reputation to work in the regulated financial services sector".

While each individual was an approved person at the time the offences were committed, there is no indication in the final notices that the offences had anything to do with their jobs. The three individuals were all convicted of criminal offences in 2018 and sentenced to imprisonment:

• Russell David Jameson - the former financial adviser was sentenced to 5 years' imprisonment and ordered to sign the sex offenders register indefinitely, for serious criminal offences involving making, possessing and distributing indecent images of children.
• Mark Horsey - the former sole director/shareholder of a financial advice firm was sentenced to 9 months' imprisonment suspended for 18 months and required to sign the sex offenders register, for offences of voyeurism: he had been surreptitiously observing and video-recording his tenant having a shower.
• Frank Cochran - the former director/shareholder of a financial advice firm was sentenced to 7 years' imprisonment and required to sign the sex offenders register for sexual assault, putting a person in fear of violence and engaging in controlling/coercive behaviour.

Our view: While criminal offences have always been an area that the FCA has focussed on when it comes to assessing fitness and propriety (F&P), these cases are perhaps notable in that they are all non-financial misconduct cases, they are not dishonesty cases (a traditional focus of FCA F&P matters) and they come as a group of findings which shows the emphasis that the FCA is placing on the F&P of those in the financial services industry.

This decision follows the FCA's emphasis that "non-financial misconduct is misconduct, plain and simple", and Megan Butler's letter to the House of Commons Women and Equalities Committee in September 2018 which stated that sexual harassment is misconduct which falls within the scope of the FCA's regulatory framework. In the FCA press release, Mark Steward was clear that "the FCA expects high standards of character, probity and fitness and properness from those who operate in the financial services industry and will take action to ensure these standards are maintained."