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FCA seeks to ban and fine non-exec £154k over conflicts of interest

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The Financial Conduct Authority is looking to ban and fine a non-executive director £154,800 for failing to disclose conflicts of interest.

The regulator has published a decision notice against Angela Burns for failing to act with integrity as a non-executive director at two mutual societies.

Burns has referred the matter to the Upper Tribunal. She also made an unsuccessful application to the Tribunal to prevent the FCA from making the decision notice public.

Burns carried out consultancy work for a US fund manager in 2006, and put forward a proposal for further consultancy work in 2008.

She then became a non-executive director and chair of the investment committee for two UK mutual societies, one in January 2009 and one in May 2010.

Burns did not notify the mutuals she was still trying to obtain work from the fund manager. The FCA argues she attempted to use her non-executive director roles for her own gain.

During her tenure at the mutual societies, one placed a £350m mandate with the fund manager and the other was considering placing a £750m mandate with the fund manager.

The FCA says Burns had a duty to disclose her interest in seeking consultancy work from the fund manager to the mutuals’ directors.

FCA director of enforcement and financial crime Tracey McDermott said: “The position of non-executive directors is critical to the effective functioning of a board and to maintaining the confidence of customers.

“Because of the nature of their role, non-executive directors are more likely to have a portfolio of appointments and are likely to find themselves having to manage conflicts of interest more frequently than their fellow directors. 

“Non-executive directors need to manage scrupulously their conflicts of interest and to observe basic corporate governance principles.”  

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  1. Shows that those at the top think they are above the rules we have to live by.

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