The UK financial regulator announced on Monday that Kristo Kaarmann, the Wise PLC billionaire CEO (LON WISE), would be fined PS350,000 ($454,224). The shares of this financial technology company have fallen to the negatives at the time of writing.
Kaarmann has sold shares worth PS10,000,000 but the tax liabilities relating to them have not been cleared in 2017.
Financial Conduct Authority found that the CEO had violated Rule 4 of their Senior Management Conduct.
Wise’s stock has fallen more than 25 percent from its high for the year.
Kaarmann had problems with taxes before
Rule 4 in the FCA Senior Management Conduct requires that top executives disclose any information “of which FCA could reasonably expect to be aware”.
Kristo Kaarmann, of Wise PLC has been fined before for a tax issue.
His Majesty’s Revenue and Customs (HMRC) ordered him to pay a penalty of PS365.651 in 2021 for being late with his 2017-18 tax returns.
According to HMRC, the tax liability for the CEO was PS720 495.
Kaarmann was also included in the list of tax defaulters by the tax collection agency at that time.
Therese chambers, FCA’s executive director for enforcement and supervision, stated that the FCA is expecting higher standards of leadership from financial firms.
She added, “It would have been clear to Mr Kaarmann he had to inform us of these matters which were relevant for our evaluation of his suitability and propriety.”
What is the best time to buy Wise in October?
Kristo Kaarmann is committed to the vision for Wise PLC.
He said the following in response to the Financial Conduct Authority of the United Kingdom’s announcement of a penalty this morning:
We have completed this process after several years of full co-operation with FCA.
Our goal is to create a business and product that will continue to serve customers for decades.
David Wells, the chairperson of Wise, a global money transfer firm has also reiterated that Wise is very serious about its obligations in terms of regulation.
The Wise Stock has seen a steep decline over the last six months, but Wall Street is still convinced of a coming recovery.
Analysts rate the fintech as “overweight”, and expect its average share price of PS9.50 to rise. This indicates a potential 30% increase from this point.
The shares of this London-based firm are not attractive to income investors because they currently do not pay dividends.
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