Lawyers representing Arch Financial Products (AFP) chief executive Robin Farrell and former compliance manager Robert Addison have cited the pair's possible inexperience in running a fast-growing organisation - not a lack of integrity - for some of the problems the regulator uncovered during its investigation into the firm in 2012.
Farrell and Addison strongly deny acting "without integrity" when managing the Arch Cru fund range, as their appeal of a Financial Services Authority (FSA) ban and fine began in the Upper Tribunal on Thursday. The FSA banned and fined Farrell and Addison £650,000 and £200,000 respectively for "recklessly" mismanaging conflicts of interest in four investments during Arch Financial's management of the funds between July 2006 and March 2009. Representing the Financial Conduct Authority (FCA), Monica Carss-Frisk QC of Blackstone Chambers claimed Arch's structure, which saw AFP act as inve...
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