(Alliance News) - Wise PLC on Monday said the UK Financial Conduct Authority has opened an investigation into Co-Founder & Chief Executive Kristo Kaarmann after a tax breach.
Wise is a London-based company offering international money transfers. It recently rebranded from TransferWise and listed on the London Stock Exchange back in July of last year.
Shares in Wise were up 0.1% to 381.90 pence each in London on Monday, but are down 57% since listing.
Wise said that UK tax collector HM Revenue & Customs in September of last year updated its published list of individuals and businesses receiving penalties for a deliberate default regarding their tax affairs. Kaarmann was included on the list and will remain so for 12 months from its publication.
Following Kaarman's inclusion on the list, the board of Wise had conducted an investigation with the help of external legal counsel.
The investigation was concluded in the fourth quarter of 2021 and the board shared details of its findings, assessments, and actions with the FCA.
In relation to this matter, Wise said the FCA has opened an investigation regarding the regulatory obligations and standards to which Kaarman is subject.
Wise said Kaarmann intends to cooperate fully with the FCA in its investigation.
Chair David Wells commented: "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."
By Sophie Rose; sophierose@alliancenews.com
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Wise Plc (WISE)