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The Financial Services Authority (FSA) has published a decision notice indicating that it has decided to prohibit Anthony Verrier (a senior executive at BGC) from performing any function in relation to any regulated activity in the financial services industry. The FSA believes that Verrier is not a fit and proper person due to concerns over his honesty, integrity and reputation.
Verrier has referred the matter to the Upper Tribunal (the Tribunal) where he and the FSA will each present their case. The Tribunal will then determine the appropriate action for the FSA to take. The Tribunal may uphold, vary or cancel the FSA’s decision. The Tribunal’s decision will be made public on its website.
The FSA based its decision on the High Court’s findings in Tullett Prebon plc (and two others) v BGC Brokers LP (and 13 others, including Verrier), [2010] EWHC 484 (QB). As the Court of Appeal summarised in Tullett Prebon plc & Ord v BGC Brokers LP & Ors, [2011] EWCA Civ 131: “Mr Verrier was found [by the High Court] to have participated in an unlawful means conspiracy, the unlawful means including the inducement of the broker defendants to breach their contracts of employment with Tullett by leaving early without lawful justification.”
Notably, the High Court also “found that in [Verrier’s] evidence Mr Verrier stuck to the truth where he was able to, but departed from it with equanimity and adroitness where the truth was inconvenient.”
Given these findings by the High Court—as well as a number of its other findings and comments concerning Verrier’s behaviour during the trial—the FSA decided that Verrier should be banned from working in the financial services industry.
Tracey McDermott, the FSA’s acting director of enforcement and financial crime, said:
“One of our fundamental requirements for approved persons is that they must act with honesty and integrity. This is to ensure not only that their customers and clients are treated properly but also that the regulator can have trust and confidence in what we are being told about the way businesses are being run. In light of the High Court’s findings about Verrier’s conduct, we have concluded that he is not fit and proper to be in the UK financial services industry.”
Background
- The Decision Notice for Anthony Verrier.
- In April 2010, the Financial Services Act 2010 amended Section 391 of FSMA, giving the FSA the power to publish decision notices. This power became active in October 2010. The FSA has previously published 15 decision notices following the granting of the new power by Parliament.
- The FSA’s approach to publishing decision notices was explained in Policy Statement 11/3, published in January 2011.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.
- The FSA will be replaced by the Financial Conduct Authority and Prudential Regulation Authority in 2013. The Financial Services Bill currently undergoing parliamentary scrutiny is expected to receive Royal Assent by the end of 2012.
