UK financial regulator fines Wise CEO for “careless” error in personal tax returns

:Britain’s financial regulator said on Monday it had fined Kristo Kaarmann, chief executive of money transfer company Wise Plc, 350,000 pounds ($453,565) to conclude an investigation into regulatory disclosures regarding the executive’s personal tax.

The Financial Conduct Authority (FCA) said Kaarmann failed to notify the regulator of a significant fine he paid to Britain’s Revenue and Customs (HMRC) in February 2021 and was added to the list of public tax debt payers in September that year.

In the statement made by the FCA, it was stated that HMRC fined Kaarmann for not notifying him of his capital gains tax liability after selling shares worth 10 million pounds in 2017, but it was not stated whether the shares belonged to Wise or another company.

The FCA said Kaarmann’s approach to reporting tax problems was “careless rather than deliberate or reckless” and that he would be fined £500,000, but was entitled to a 30 per cent discount if he agreed to resolve the matter.

In a separate statement, Wise said the FCA and Kaarmann had agreed to fully resolve the investigation and the regulator deemed the CEO fit to continue in his role at Wise, which listed on the London Stock Exchange in July 2021. ($1 = 0.7717 pounds)