The Financial Conduct Authority (FCA) has issued a £350,000 fine to the CEO of Wise and senior manager of Wise Assets UK, Kristo Käärmann.

The regulator said that Käärmann had breached a senior manager conduct rule for failing to notify it of significant tax issues.

In February 2021, Käärmann paid a significant fine to HMRC of £365,651. He was fined for deliberately failing to notify HMRC of a capital gains tax (CGT) liability after he sold shares worth £10m in 2017. In September 2021, HMRC subsequently added Käärmann to its public tax defaulters list.

Between February 2021 and September 2021, these matters, including the circumstances surrounding them, were relevant to the FCA’s assessment of Käärmann’s fitness and propriety.

However, the FCA said that Käärmann failed to “appropriately consider the significance of the tax issues”, as well as a notify the regulator, despite being aware of them for over seven months.

“We, and the public, expect high standards from leaders of financial firms, including being frank and open,” commented joint executive director of enforcement and oversight, Therese Chambers.

“It should have been obvious to Käärmann that he needed to tell us about these issues which were highly relevant to our assessment of his fitness and propriety.”

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