The Tribunal has directed the FSA to prohibit the former CEO of a financial reinsurance business for his involvement in three reinsurance transactions between 1998 and 2001. The Tribunal considered that he was reckless as to whether the transactions were intended to mislead auditors, must have appreciated that information was concealed from auditors and others and lacked integrity. The Tribunal commented that it is unethical to promote financial products with the potential for abuse on the basis that the client is responsible for full disclosure to auditors, regulators and others. In fixing the penalty, the Tribunal also seems to have considered that, by fighting his case, Mr Vukelic demonstrated a “persistent failure to recognise shortcomings” which was viewed as an important consideration in a case concerning the right to continue in a position of trust.

View FSA wins case to ban former chief executive of Gen Re business unit, 1 April 2009