The UK Financial Conduct Authority (FCA) revealed Monday that it has concluded its investigation into Wise co-founder and CEO Kristo Käärmann, imposing a £350,000 penalty.
FCA Concludes Investigation into Wise CEO, Imposes £350k Penalty
The investigation originated from Käärmann’s inclusion on the HMRC list of individuals who received penalties for deliberate tax defaults in 2017/2018.
While the FCA said in its release that it did not find that Käärmann acted with a lack of integrity or was unfit to perform his role, it determined that he should have notified Wise’s regulated subsidiaries and the FCA about his tax affairs earlier.
The FCA’s penalty, reduced by 30% for early resolution, aims to deter similar misconduct.
Wise’s board said it was satisfied with the FCA’s findings, which align with its own assessment in 2021.
“Following the inclusion of Kristo’s name on HMRC’s list in September 2021, the Board conducted its own investigation and assessed that Kristo remained fit and proper to continue in his roles at Wise,” said David Wells, Wise’s Chair.
Meanwhile, Kristo Käärmann, stated: “After several years and full cooperation with the FCA, we have brought this process to a close.
“I remain focused on delivering the mission for Wise and achieving our long-term vision for being ‘the’ network for the world’s money.”
