FINAL NOTICE
To:
Timothy Alan Roberts
Individual
Reference
Number:
TAR01042
Date:
8 April 2016
1.
ACTION
1.1.
For the reasons given in this notice, the Authority hereby:
(1)
imposes on Mr Roberts a financial penalty of £450,000 for failure to
comply with Statement of Principles 1 and 6 of the Authority’s Statements
of Principle for Approved Persons; and
(2)
makes an order prohibiting Mr Roberts from performing any function in
relation to any regulated activities carried on by any authorised or exempt
persons, or exempt professional firm. This order takes effect from the date
of this notice.
2.
REASONS FOR ACTION
2.1.
By its Decision Notice dated 14 August 2013, the Authority gave Mr Roberts
notice that, in light of its findings that as a Director of Catalyst Investment Group
Limited (“Catalyst”) he acted without integrity (in breach of Statement of
Principle 1) and failed to exercise due skill, care and diligence (in breach of
Statement of Principle 6) and is not a fit and proper person to perform any
function as described above, it had decided to impose on him a financial penalty
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of £450,000, withdraw his approval to carry out controlled functions at that firm
and impose a prohibition order on him in the above terms.
2.2.
On 11 September 2013 Mr Roberts referred this Decision Notice to the Upper
Tribunal (Tax and Chancery Chamber) (“the Tribunal”). The written decision of
the Tribunal was released on 11 August 2015 and can be found on the Tribunal’s
website:
http://www.tribunals.gov.uk/financeandtax/Documents/decisions/Timothy-Alan-
Roberts-and-Andrew-Wilkins-v-FCA.pdf
2.3.
The Tribunal determined that Mr Roberts had breached Statements of Principle 1
and 6, and directed the Authority to impose a financial penalty on Mr Roberts of
£450,000 pursuant to section 66 of the Financial Services and Markets Act 2000
(“the Act”). The Tribunal also dismissed Mr Roberts’ reference in relation to the
prohibition order the Authority had decided to make pursuant to section 56 of the
Act and the withdrawal of his approval to carry out controlled functions at
Catalyst pursuant to section 63 of the Act.
2.4.
The Tribunal’s written decision sets out fully the Tribunal’s reasons for
determining the appropriate action for the Authority to take in relation to Mr
Roberts as described above. It should therefore be read in full. Those reasons
are incorporated herein by reference.
2.5.
The Tribunal’s conclusions, as to the facts and the appropriate outcomes, included
the following at paragraph 280 of its written decision:
“We consider the degree to which Mr Roberts acted with a lack of integrity to be
serious. He closed his mind to the reality that both ARM and the CSSF considered
that ARM required authorisation, closed his mind to the difficulties in ARM’s
application and as a result gave misleading reports to personnel at Catalyst as to
the tenor of meetings he attended with the CSSF. He also failed to consider the
interests of investors in pending tranche 9 when he authorised the receiving
agents to pay over part of the funds held by them to Catalyst and ARM. Even
when the Authority brought its concerns to his attention in April 2010 and asked it
to cease allowing the promotion of the bonds, with the consequent receipt of
income, he resisted that request.”
2.6.
On 27 January 2016, the Court of Appeal refused Mr Roberts’ application for
permission to appeal the Tribunal’s decision.
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2.7.
In light of the above, the Authority has issued this Final Notice.
3.
PROCEDURAL MATTERS
3.1.
This Final Notice is given under, and in accordance with, section 390 of the Act.
Manner of and time for Payment
3.2.
The financial penalty must be paid in full by Mr Roberts to the Authority by no
later than the date 14 days from the date of this notice.
If the financial penalty is not paid
3.3.
If all or any of the financial penalty is outstanding on that latter date, the
Authority may recover the outstanding amount as a debt owed by Mr Roberts and
due to the Authority.
Publicity
3.4.
Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of
information about the matter to which this notice relates. Under those
provisions, the Authority must publish such information about the matter to which
this notice relates as the Authority considers appropriate. The information may
be published in such manner as the Authority considers appropriate. However,
the Authority may not publish information if such publication would, in the opinion
of the Authority, be unfair to Mr Roberts or prejudicial to the interests of
consumers or detrimental to the stability of the UK financial system.
Authority contacts
3.5.
For more information concerning this matter generally, contact Matthew Hendin
(direct line: 020 7066 0236) of the Enforcement and Market Oversight Division of
the Authority.
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Bill Sillett
Director Retail and Regulatory Investigations
Enforcement and Market Oversight Division
Financial Conduct Authority
https://www.fca.org.uk/publication/final-notices/timothy-alan-roberts.pdf