Thursday 24 April 2014

UK: Deterrent effect warrants substantial penalty, Tribunal holds

Judgment was given earlier this month by the Upper Tribunal (Tax and Chancery Chamber) in Khan v Financial Conduct Authority: see here (pdf). The Tribunal directed that it was appropriate for the FCA to fine Mr Khan £80,000 for his failure to act with integrity, as required by Principle 1 of the Statements of Principle and Code of Practice for Approved Persons, by submitting a personal mortgage application containing false income details. In doing so, the Tribunal held that a substantial financial penalty was required for reasons of deterrence given the prevalence of mortgage fraud and its potential effect on the stability of the financial system.

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