header-logo header-logo

Silence isn’t golden

256247
© Getty images
It’s the failure to co-operate that does the most damage, writes Jessica Caws—so if in doubt, notify
  • Covers FCA Handbook rules on failure to disclose, and asserts that it is always best to be open and co-operative with the financial regulator.
  • Highlights key points raised by the case of Carlos Fuenmayor, who was fined by the FCA in June 2026.
  • References past examples where failure to disclose exacerbated the initial issue.

The Financial Conduct Authority’s (FCA’s) June 2026 fine of close to £100,000 imposed on Carlos Fuenmayor, chief executive of BancTrust, emphasises a point that we, as regulatory lawyers, return to time and again; we consistently advise our clients to be open and co-operative with the regulator. Indeed, in enforcement matters it is often the failure to disclose that proves more damaging than the underlying rule breach itself.

In this most recent matter, Fuenmayor failed to notify the FCA of three significant issues: that he had been placed under investigation by the US Financial Industry Regulatory Authority

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Womble Bond Dickinson—Paula Myers

Womble Bond Dickinson—Paula Myers

Womble Bond Dickinson appoints Paula Myers to private capital team in Leeds

mfg Solicitors—five promotions

mfg Solicitors—five promotions

Law firm mfg Solicitors announces five promotions at Birmingham office

Brabners—six promotions

Brabners—six promotions

Brabners adds six to partnership in record year for partner promotions

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll