The Financial Services Authority is seeking to ban two Arch Financial Products bosses and impose a fine of £850,000, for failings over conflicts of interest.
The watchdog has published its Decision Notices relating to Arch Financial Products, the firm’s chief executive Robin Farrell and its former compliance officer Robert Addison, in which the FSA states its aim of banning Farrell and Addison from regulated financial services.
The FSA also wants to fine Farrell and Addison £650,000 and £200,000 respectively.
The watchdog said it would have fined AFP £9 million for misconduct were it not for the firm’s financial position. Instead, the FSA has issued a public censure.
The FSA said AFP was ‘in a position of trust’ which is undermined by not demonstrating fair management of conflicts of interests.
AFP also pursued an investment strategy which resulted in significant liquidity risks for the funds.
Tracey McDermott, director of enforcement and financial crime, said: ‘When making investment decisions, a fund manager should ensure that it puts investors’ interests ahead of its own and be able to demonstrate that it has managed conflicts of interest.
‘Those with responsibility for managing authorised firms must ensure not only that the firm complies with regulatory requirements but also that they personally act with the highest standards of integrity.’