The Financial Conduct Authority (FCA) has won its case at the Upper Tribunal to ban former derivatives trader David John Hobbs from performing any role in regulated financial services for lying to the regulator.
On 23 July 2010 the forerunner to the FCA the Financial Services Authority (FSA) fined Hobbs £175,000 and imposed a ban on him for what the regulator alleged was market abuse.
Hobbs, a proprietary trader at Mizuho International, referred the decision to the Tribunal, which found that although he had not committed market abuse he had lied to the Tribunal and the regulator.
Given this finding the Tribunal directed the regulator to take no action against Hobbs.
However the FCA appealed the Tribunal's decision regarding Hobbs' fitness and propriety - but not its finding on market abuse - to the Court of Appeal.
On 29 July 2013 the Court of Appeal found that the Tribunal needed to address the question whether, even if Hobbs was not guilty of market abuse, his lying, which the Tribunal found as a fact, demonstrated that he was not a fit and proper person.
The Tribunal found that, in putting forward a false defence to the regulator during the course of its investigation, and in maintaining that defence in evidence before the Tribunal, Hobbs had exhibited a lack of integrity such that he is not a fit and proper person.
FCA director of enforcement and financial crime Tracey McDermott said: "Hobbs misled the FCA during its investigation. He misled the Tribunal.
"Accordingly, he failed to demonstrate the standards of behaviour that we expect of those who hold the privileged position of approved person and failed in his basic responsibility to act with integrity: if you cannot tell the truth there is no place for you in the financial services industry."
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