The FCA has decided to fine Roberts £450,000 and ban him from the industry; and fine Wilkins £100,000 and prevent him from holding senior roles in future.
The decision notices reflect the FCA’s view of events and of Roberts and Wilkins’ behaviour. Roberts and Wilkins have referred their cases to the Upper Tribunal, which will reconsider the case and may uphold, vary or cancel the FCA’s decision. The Upper Tribunal’s decision will be published on its website.
Catalyst has also been censured by the FCA for recklessly misleading investors when promoting bonds offered by ARM Asset Backed Securities SA (ARM) between November 2009 and May 2010.
Timothy Roberts was the chief executive of Catalyst and a director of ARM from March 2007. The FCA found Roberts had recklessly approved unfair and misleading communications to investors.
Andrew Wilkins was a director at Catalyst between October 2007 and March 2010. The FCA found he allowed Catalyst to continue promoting ARM bonds and approved misleading communications to investors.
The FCA found that both men failed to act with due skill, care and diligence, and Roberts’ conduct demonstrated a lack of integrity. Furthermore they both failed to inform Catalyst’s compliance officer of the fact that ARM believed it needed a licence to issue the bonds until December 2009.
UK investors have invested £54 million in ARM bonds, including £17.1 million in un-issued ARM bonds, and may lose a significant part of their investment. Those affected should refer to the Financial Services Compensation Scheme for details of how and when to make a claim for compensation.
