The UK Financial Conduct Authority fined Carlos Ricardo Fuenmayor, Chief Executive of BancTrust, £99,600 for failing to disclose multiple regulatory and financial matters, including a prior investigation and sanction from the US Financial Industry Regulatory Authority and the freezing of Venezuelan bank accounts tied to him and associated companies. According to the FCA, Fuenmayor failed until December 2021 to disclose that FINRA investigated him in December 2017 and sanctioned him in June 2019 with a $20,000 fine and a 15-month suspension, and also failed to disclose that Venezuelan authorities froze local currency bank accounts belonging to him, his Venezuelan companies and their directors shortly before an FCA inspection in November 2019. The case highlights how UK regulators increasingly expect senior executives to disclose foreign investigations, politically sensitive financial actions and matters potentially affecting their fitness and propriety assessments under the Senior Managers and Certification Regime.
FCA Finds Fuenmayor Failed To Disclose FINRA Sanction And Venezuelan Account Freezing
According to the FCA, Fuenmayor failed until December 2021 to disclose that he had been investigated by FINRA in December 2017 and later sanctioned in June 2019. FINRA imposed a $20,000 fine and a 15-month suspension related to what Fuenmayor later described as a technical registration-related issue in the United States.
The FCA also said he failed to disclose that Venezuelan authorities froze local currency bank accounts belonging to him, his Venezuelan companies and their directors shortly before an FCA inspection in November 2019. The regulator said those failures prevented it from fully assessing his ongoing fitness and propriety as an approved executive operating inside the UK financial system.
Therese Chambers, Executive Director of Enforcement and Market Oversight at the FCA, said, "Disclosing information which we reasonably expect, and doing it promptly, is key to maintaining trust in financial services and supporting a strong market that works well for consumers."
The FCA concluded the failures were negligent and said Fuenmayor breached APER Statement of Principle 4 and Senior Manager Conduct Rule 4, which require individuals to appropriately disclose information regulators would reasonably expect to receive. Fuenmayor referred the FCA's Decision Notice to the Upper Tribunal, meaning the findings remain provisional pending legal proceedings.
Fuenmayor reportedly argued those measures were politically motivated following his support for a pro-democracy event in London connected to opposition against the Maduro government. According to reports, he argued the FCA's position risks legitimizing actions imposed by what he described as an oppressive regime.
UK Senior Managers Regime Places Direct Accountability On Executives
The enforcement action reflects regulatory shifts across the UK financial industry following years of pressure to strengthen executive accountability after multiple financial scandals and governance failures. The FCA's Senior Managers and Certification Regime places direct responsibility on senior executives for governance oversight, regulatory disclosure, risk management, operational controls and compliance accountability.
The regime was designed to reduce consumer harm and strengthen market integrity by making senior individuals more directly accountable for conduct failures inside financial institutions. Regulators increasingly signal they are willing to pursue individuals directly rather than focusing solely on corporate enforcement.
BancTrust Reports $18.4 Million Loss During 2024 Restructuring
The London-based emerging markets investment bank posted an $18.4 million loss during 2024 while undertaking restructuring measures, headcount reductions and cost-cutting efforts amid broader pressure across emerging market financial businesses. BancTrust reportedly warned of "material uncertainty" regarding its future operations after posting substantial losses and restructuring parts of its business.
The firm nevertheless said operations continue normally and stated it remains committed to maintaining high compliance and governance standards. Rising interest rates, geopolitical instability and weaker capital markets activity across several developing economies pressured portions of the emerging markets financial sector over the past two years.
FAQ
What did the FCA fine Carlos Ricardo Fuenmayor for?
The FCA fined Carlos Ricardo Fuenmayor £99,600 for failing to disclose a FINRA investigation from December 2017 and sanction from June 2019 ($20,000 fine and 15-month suspension), as well as the freezing of Venezuelan bank accounts belonging to him and associated companies shortly before an FCA inspection in November 2019.
What regulatory rules did Fuenmayor breach according to the FCA?
The FCA concluded Fuenmayor breached APER Statement of Principle 4 and Senior Manager Conduct Rule 4, which require individuals to appropriately disclose information regulators would reasonably expect to receive. The FCA said the failures were negligent and prevented it from fully assessing his fitness and propriety as an approved executive.
What financial results did BancTrust report during 2024?
BancTrust posted an $18.4 million loss during 2024 while undertaking restructuring measures, headcount reductions and cost-cutting efforts. The firm reportedly warned of "material uncertainty" regarding its future operations but stated operations continue normally and it remains committed to maintaining high compliance and governance standards.
