The FCA has issued a Decision Notice proposing to fine Carlos Ricardo Fuenmayor £99,600 for a compliance failure that many advisers might not even realise could land them in trouble: failing to disclose overseas investigations and enforcement actions.
This case is a stark reminder that your disclosure obligations extend well beyond UK borders—and that the FCA takes a dim view of individuals who don't volunteer information about their regulatory history abroad.
What Actually Happened
Fuenmayor was the CEO and sole director of an FCA-authorised firm. The problem? He failed to tell the FCA about investigations, sanctions, and enforcement actions he'd faced from overseas regulators.
The FCA's position is straightforward: if you're seeking or holding a position that requires regulatory approval, you must disclose any relevant regulatory history—wherever in the world it occurred. Fuenmayor didn't do this, and the regulator considers this a serious breach of the requirement to deal with the FCA in an open and cooperative way.
The proposed fine of £99,600 isn't pocket change. It's a clear signal that the FCA treats non-disclosure as seriously as it treats the underlying conduct that might have triggered foreign regulatory action in the first place.
Your Disclosure Obligations Are Broader Than You Think
Many advisers understand they need to disclose UK regulatory matters. Fewer appreciate just how wide the net is cast when it comes to overseas activity.
Under Principle 11 (relations with regulators), you must deal with the FCA in an open and cooperative way and disclose anything relating to the firm of which the FCA would reasonably expect notice. This includes:
- Investigations by overseas regulators—even if they didn't result in any finding against you
- Sanctions or fines imposed by foreign financial regulators
- Enforcement actions taken against you in other jurisdictions
- Restrictions or conditions placed on your ability to operate abroad
- Pending proceedings that haven't yet concluded
The FCA's Fit and Proper test (FIT) specifically asks about regulatory action taken against you by any regulatory body, not just UK ones. If you've worked in financial services in another country and had any brush with the local regulator, the FCA expects to know about it.
Why This Matters for IFAs
You might think this case only affects people with exotic international careers. But consider these scenarios:
Dual-qualified advisers: If you hold qualifications or authorisations in Ireland, the EU, or elsewhere, any regulatory issues there are disclosable here.
Previous roles abroad: Spent time working in Dubai, Singapore, or another financial centre? Any regulatory history follows you back to the UK.
Overseas investments: If you've been involved with offshore structures or foreign investment schemes that attracted regulatory attention, the FCA wants to know.
Business partners and associates: While this case concerns an individual's own history, the FCA also takes a keen interest in your associations with others who've faced regulatory action abroad.
The Timing Problem
One aspect of these cases that catches people out is timing. The disclosure obligation isn't just triggered when you first apply for authorisation. It's ongoing.
If you face overseas regulatory action while you're already authorised in the UK, you need to notify the FCA. Sitting on the information and hoping nobody notices is precisely the behaviour that turns a manageable situation into a £99,600 fine.
The Fuenmayor case suggests the FCA discovered the overseas matters through its own channels—perhaps through international regulatory cooperation agreements—rather than from the individual himself. That's about the worst way for the regulator to find out.
Practical Steps to Take
1. Audit your own history: If you've worked in financial services outside the UK, review whether there's anything in your past that might be disclosable. This includes informal warnings, not just formal enforcement.
2. Check your firm's records: If you're a principal or compliance officer, ensure your approved persons' disclosure records are complete and up to date.
3. When in doubt, disclose: The FCA would far rather receive a notification about something that turns out to be immaterial than discover you've been sitting on relevant information.
4. Document your disclosures: Keep records of what you've told the FCA and when. If questions arise later, you want a clear paper trail.
The Bigger Picture
This case fits into a broader FCA priority: ensuring that individuals in positions of responsibility are genuinely fit and proper to hold those roles. The regulator has been increasingly willing to look beyond UK borders when assessing people's suitability.
With international regulatory cooperation growing stronger each year, the chances of overseas issues remaining hidden are shrinking. The FCA has information-sharing agreements with regulators across the globe, and it uses them.
The £99,600 fine proposed for Fuenmayor isn't just punishment for past non-disclosure. It's a message to everyone else in the industry: your regulatory history doesn't stop at passport control.
PostGuard automatically checks your social media posts against FCA financial promotion rules before you publish. Catch problems before the FCA does — start with 3 free checks at postguard.online