23Nov

On November 16 2015, the Financial Conduct Authority (FCA) banned insurance broker Robin Choudhury (also known as Misba Uddin) from working in financial services. Misba Properties Limited was amongst the firms for which Mr Choudhry carried out controlled functions.

This follows Mr Choudhry’s 2013 conviction. He pleaded guilty at Southwark Crown Court to 13 offences “of dishonestly making a false representation to make gain for himself or another or cause loss to another or expose another to risk”, for which he was sentenced to six years and four months in prison.

No holder of a controlled function who receives a custodial sentence of this kind can ever realistically expect to be allowed to continue to work in financial services. If the criminal conduct occurs prior to an individual’s application for approved person status, then they should expect the application to be unsuccessful. Mr Choudhry’s FCA ban comes as no surprise.

The previous month (October 2015) saw UBS trader Kweku Mawuli Adoboli banned from the industry. His fraudulent trading activities saw his bank lose £1.4 billion, in addition to the £2.8 billion that was wiped off its share price. In November 2012 he had been found guilty at Southwark Crown Court of offences under the Fraud Act and sentenced to concurrent jail terms of four and seven years. Mr Adoboli has since been released on licence after serving half of his seven year term.

Paul Robson was banned by the FCA in February 2015 after he was convicted in August 2014 in the United States for manipulating the LIBOR interest rate while working at Rabobank. He will not be sentenced until 2017, while he co-operates with the continuing investigations of the US authorities. He recently gave evidence against colleagues Anthony Allen and Anthony Conti at their trials.

Sometimes the regulatory action comes prior to the individual receiving a custodial sentence. In 2008, the former financial watchdog, the Financial Services Authority (FSA), banned mortgage broker Asim Hussain over the accuracy of information on applications submitted to lenders. Seven years later, he pleaded guilty at Southwark Crown Court to falsifying clients’ income and employment details on mortgage applications, and to additional tax evasion charges, and received a suspended two year jail sentence and 240 hours of community service.

Mortgage broker Michael Lewis however elected to continue trading even after his 2011 ban, imposed by the FSA, for submitting mortgage applications containing incorrect client employment details. By trading without authorisation, under the names The Lewis Partnership and The Medway Partnership, Mr Lewis committed a criminal offence under the Financial Services and Markets Act 2000. In June 2013, he pleaded guilty at Maidstone Crown Court to this offence and to offences under the Fraud Act 2006 in respect of the falsified application details, and was sentenced to two years imprisonment.

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article