This announcement contains inside information
UK Financial Conduct Authority (FCA) concludes investigation into
Kristo Käärmann
Further to our announcement in June 2022, the FCA has now concluded
its investigation into whether Kristo Käärmann, Wise's co-founder
and Chief Executive Officer ("Kristo" or the "CEO"), complied with
the regulatory obligations and standards to which he was subject,
following the September 2021 publication of his name on the HM
Revenue & Customs ("HMRC") list of individuals and businesses
who received penalties for a deliberate default regarding their tax
affairs. This publication was in relation to Kristo's personal tax
affairs for the tax year 2017/2018.
The FCA and Kristo have reached agreement to resolve the
investigation fully.
The FCA has not made any adverse findings regarding Kristo's
continued fitness and propriety to perform his current roles at
Wise, nor found that he acted with a lack of integrity. The FCA
has, however, said that Kristo did not adequately consider the
significance of his communications with HMRC and should, by
February 2021, have notified Wise's regulated subsidiaries and the
FCA of these matters.
The FCA is imposing a penalty of £350,000 on Kristo, discounted by
30% from £500,000 as a result of Kristo and the FCA resolving the
case by agreement at the earliest opportunity. The penalty amount,
which would otherwise have been £41,493 prior to the 30% settlement
discount, is based on the FCA's desire to ensure that it delivers
credible deterrence.
The FCA's findings will be published on its website
shortly.
David
Wells, Chair, said:
"The Board continues to take Wise's regulatory obligations very
seriously. We're pleased that the FCA's conclusions are consistent
with Wise's own assessment in 2021, and that the matter is now
closed in its entirety.
"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. The Board also required him to take remedial actions
to ensure that his personal tax affairs are appropriately managed
and is satisfied that these actions were taken."
Kristo
Käärmann, CEO, said:
"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. We continue to build a product and a
company that will serve our customers and owners for the decades to
come."
Enquiries
Martin Adams - Investor Relations
owners@wise.com
Sana Rahman - Communications
press@wise.com
Brunswick Group
Charles Pretzlik / Nick Beswick
Wise@brunswickgroup.com
+44 (0) 20 7404 5959
About Wise
Wise is a global technology company, building the best way to move
and manage the world's money. With Wise Account and Wise Business,
people and businesses can hold 40 currencies, move money between
countries and spend money abroad. Large companies and banks use
Wise technology too; an entirely new network for the world's money.
One of the world's fastest growing, profitable tech companies, Wise
launched in 2011 and is listed on the London Stock Exchange under
the ticker, WISE.
In fiscal year 2024, Wise supported around 12.8 million people and
businesses, processing approximately £118.5 billion in cross-border
transactions, and saving customers over £1.8 billion.