The Upper Tribunal has upheld the FCA’s decision to fine an investment manager £89,004 for his role in allowing market abuse to take place.
The FCA sought to fine and ban Somerset Asset Management compliance officer Tariq Carrimjee in August 2013 for his role in market manipulation by private investor Rameshkumar Goenka.
The regulator fined Dubai-based Goenka £6.1m in November 2011.
The Tribunal has not upheld the FCA’s decision to ban Carrimjee from financial services. In the first time it has used new powers since it was handed them in April 2013, the Tribunal has remitted part of a case back to the FCA to reconsider in line with its findings.
The Tribunal has recommended a partial ban which would prevent Carrimjee from taking on certain roles.
Carrimjee held a senior position at Somerset at the relevant time and was responsible for compliance oversight.
The Tribunal found that Carrimjee failed to act with due skill, care and diligence in failing to escalate the risk that his client, Goenka, might have been intending to engage in market manipulation, and that this risk should have been apparent to Carrimjee.
It did not uphold the FCA’s decision that Carrimjee had acted without integrity.
In relation to the same case, the FCA also fined Stockbroker Paul E Schweder Miller & Co senior partner and compliance officer David Davis £70,258 and banned him from holding a senior position in any financial services firm for failing to act with due skill, care and diligence.
A broker at the same firm, Vandana Parikh, was fined £45,673 on the same grounds.