By Sam Tobin
LONDON (Reuters) -Three former employees of Swiss private bank Julius Baer on Tuesday won an appeal against a proposed lifetime ban from working in finance as London judges castigated Britain’s markets watchdog for disclosure failings.
The Financial Conduct Authority (FCA) fined the bank’s London-based subsidiary in November for facilitating finder’s fees – a type of commission – between Bank Julius Baer and an employee at bankrupt Russian oil group Yukos Group more than a decade ago.
The FCA also proposed banning former regional head Gustavo Raitzin, Thomas Seiler, a one-time sub-regional market head and former relationship manager Louise Whitestone from working in finance for allegedly acting recklessly and without integrity.
The three ex Bank Julius Baer employees appealed against the proposed bans to London’s Upper Tribunal, which on Tuesday allowed their appeals, asking the regulator to reconsider whether a ban should be imposed.
The tribunal said the trio had “demonstrated varying degrees of a lack of competence and capability”.
However, Judge Timothy Harrington said it would be “irrational” to impose a full or partial ban on the grounds that the three acted without integrity.
Harrington also said the FCA had failed to disclose a document, which was “extremely troubling” and a “basic error”, accused the watchdog of failing to call key witnesses and suggested it consider whether it was appropriate to accept a version of events put forward by an employer.
“There are only so many times that the Authority (FCA) can apologise for its failings, insist that lessons have been learned and then expect that those affected should simply move on,” he said in the unanimous judgment.
The FCA said a document “of limited significance” had been missed as a result of human error and that it would review its disclosure processes.
Adam Epstein, a lawyer at Mishcon de Reya representing Seiler, said he was pleased the tribunal dismissed any suggestion his client acted without integrity.
Raitzin said in a statement: “My position has been fully vindicated. It is regrettable that it has taken so long for justice to prevail.”
Whitestone’s lawyer Subir Desai also said in a statement that his client was pleased with the ruling.
(Additional reporting by Kirstin RidleyEditing by Mark Potter, Barbara Lewis and David Evans)
