UK Financial Regulator Fines Wise CEO

Britain’s financial regulator said on Monday it has fined money transfer firm Wise Plc’s (WISEa.L), opens new tab CEO, Kristo Kaarmann, 350,000 pounds ($453,565) to settle an investigation into the executive’s regulatory disclosures related to his personal tax.

The Financial Conduct Authority (FCA) said Kaarmann did not notify the regulator of a significant fine he paid Britain’s Revenue and Customs agency (HMRC) in February 2021 and of his addition to the public tax defaulters list in September that year.

The HMRC had fined Kaarmann for not notifying it of a capital gains tax liability after he sold shares worth 10 million pounds in 2017, the FCA said in a statement, but did not specify if the shares were that of Wise or another company.

The FCA said Kaarmann’s approach to his notification of the tax issues was “careless as opposed to deliberate or reckless” and that he would have been fined 500,000 pounds, but became eligible for a 30% discount on agreeing to resolve the matter.

Wise, in a separate statement, said the FCA and Kaarmann have agreed to resolve the investigation fully and that the regulator found the CEO fit to continue in his role at Wise, which got listed on the London Stock Exchange in July 2021. ($1 = 0.7717 pounds)

Reuters/Shakirat Sadiq