The FSA has won its case before the Financial Services and Markets Tribunal (the Tribunal) to ban the former CEO of Alternative Solutions (AltSol) from working in the UK financial services industry.
The Tribunal found that Mr Milan Vukelic's actions during August 1999 until October 2002, whilst acting as CEO, lacked integrity.
The AltSol business unit was established by the General Reinsurance Corporation to develop and market financial reinsurance products. The contracts can be misused by struggling insurance companies seeking to disguise their true financial position.
The tribunal says during his time as CEO Vukelic was responsible for overseeing and structuring three different transactions designed to allow the client insurance companies to hide very significant losses in their accounts.
The FSA says Vukelic knew that the deals were not genuine reinsurance transactions and that they could be used to mislead the clients' auditors.
Two of the three client insurance companies subsequently collapsed with wide-ranging consequences. The Tribunal found that Vukelic had "turned a blind eye" to the true nature of the contracts and was "reckless as to whether they were intended to mislead auditors and others".
"This case has been fought every inch of the way by Mr Vukelic. We are determined to take whatever action is necessary to ensure that individuals should not avoid the consequence of their actions. The Tribunal rightly criticised his persistent failure to recognise his shortcomings," says Margaret Cole, FSA director of enforcement.
"Those carrying out senior functions in regulated firms need to be clear that the FSA will hold them to the highest standards of behaviour and will take action against those who fall short. There is no place in financial services for the sort of behaviour demonstrated by Mr Vukelic."
To comment, contact Charlotte Banks on 0207 484 9943 or email: [email protected]IFAonline
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