FCA fine Julius Baer International Limited £18m
The FCA has imposed a fine of £18,022,500 on Julius Baer International Limited (JBI) for failing to conduct its business with integrity, failing to take reasonable care to organise and control its affairs and failing to be open and cooperative with the FCA.
JBI breached were in breach of FCA’s Individual Conduct Rules, after an investigation, revealed that JBI had paid $3m in finder’s fees to Yukos Group employee Dimitri Merinson for introducing Yukos’ companies to Julius Baer.
The group’s companies placed large cash sums with Julius Baer and the company charged higher than standard rates for uncommercial FX transactions. Proceeds were then shared between Julius
Baer and Merinson, with the latter receiving commission payments totalling approximately $3m.
The FCA found the fees to be improper and JBI lacked adequate policies and procedures to manage risks arising from the firm and finders.
There were also no policies that defined the rules
surrounding the use of finders within JBI until after June 2010.
It has also banned three senior managers at the group: former regional head Gustavo Raitzin,
former sub-regional head for Russia and Eastern Europe Thomas Seiler and former relationship manager Louise Whitestone.
JBI made an agreement to settle all the issues at an early stage by partially agreeing to liability, therefore qualifying for a discount.
Without this, the FCA would have imposed a fine of £24.5m.