Markos Markou v The Financial Conduct Authority

Markos Markou v The Financial Conduct Authority

Mr Markou acted recklessly and without integrity by knowingly allowing FSE to carry on regulated mortgage business without PII, failing to implement and adhere to FSE's own compliance policies, and giving evidence to the regulator and tribunals without taking reasonable steps to ensure its accuracy. The Upper Tribunal erred in law in its approach to recklessness, integrity, and regulatory compliance. The FCA's appeal is allowed on these grounds, and the Reference is dismissed as regards withdrawal of approval and prohibition order, but the financial penalty is reduced to £10,000.

Parties
Applicant/respondent: Mr Markos Markou; Respondent/appellant: The Financial Conduct Authority
Jurisdiction
England and Wales
Judgment Date
17 December 2024
Procedural Posture
Appeal (regulatory/disciplinary) / Court of Appeal Judgment on Appeal From Upper Tribunal
Outcome
Appeal allowed in part; Reference dismissed as regards withdrawal of approval and prohibition order; financial penalty reduced and remitted to FCA for imposition at £10,000.
Legal Topics
Professional Indemnity Insurance, Regulatory Compliance, Mortgage Broking, Fitness and Propriety of Senior Managers, Recklessness and Integrity in Financial Services, Tribunal Jurisdiction
Financial Regulation Administrative Law Professional Indemnity Insurance Regulatory Compliance Mortgage Broking Fitness and Propriety of Senior Managers Recklessness and Integrity in Financial Services Tribunal Jurisdiction

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Parties

Mr Markos Markou

Applicant/respondent

The Financial Conduct Authority

Respondent/appellant

Procedural Posture

Appeal (regulatory/disciplinary) / Court of Appeal Judgment on Appeal From Upper Tribunal

Legal Issues

  1. 1 Whether Mr Markou acted recklessly and lacked integrity in allowing FSE to conduct regulated mortgage business without professional indemnity insurance (PII)
  2. 2 Whether Mr Markou was reckless as to giving misleading evidence to the regulator and tribunals
  3. 3 Whether Mr Markou failed to implement and adhere to FSE's own systems and controls against mortgage fraud

Ratio Decidendi

Mr Markou acted recklessly and without integrity by knowingly allowing FSE to carry on regulated mortgage business without PII, failing to implement and adhere to FSE's own compliance policies, and giving evidence to the regulator and tribunals without taking reasonable steps to ensure its accuracy. The Upper Tribunal erred in law in its approach to recklessness, integrity, and regulatory compliance. The FCA's appeal is allowed on these grounds, and the Reference is dismissed as regards withdrawal of approval and prohibition order, but the financial penalty is reduced to £10,000.

Court Disposition

Appeal allowed in part; Reference dismissed as regards withdrawal of approval and prohibition order; financial penalty reduced and remitted to FCA for imposition at £10,000.

Orders

  • Reference dismissed in respect of withdrawal of approval and prohibition order against Mr Markou.
  • FCA directed to impose a reduced financial penalty of £10,000 on Mr Markou.