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(Sharecast News) - Wise said on Monday that the Financial Conduct Authority has opened an investigation into its co-founder chief executive, Kristo Kaarmann, after he was fined by HMRC for deliberately defaulting on his taxes.
The payments firm noted that in September 2021, HRMC updated its published list of individuals and businesses receiving penalties for a deliberate default on their tax affairs, with Kaarmann included on the list.
Following his inclusion, Wise conducted an investigation with support from external legal counsel. This concluded in the fourth quarter of last year and Wise shared details of its findings, assessment and actions with the FCA.
"In relation to this matter, the FCA has commenced an investigation regarding the regulatory obligations and standards to which Kristo is subject," the company said.
Chair David Wells said: David Wells, Chair, said: "The board takes Kristo's tax default and the FCA's investigation very seriously. After reviewing the matter late last year the board required that Kristo take remedial actions, including appointing professional tax advisors to ensure his personal tax matters are appropriately managed.
"The board has also shared details of its own findings, assessment and actions with the FCA and will cooperate fully with the FCA as and when they require, while continuing to support Kristo in his role as CEO."
