IOM FSA sanctions a Head of Compliance & MLRO for lack of integrity in the “individual’s private life.”

The Isle of Man Financial Services Authority (“the Authority”) has deemed it reasonable, necessary, and proportionate to prohibit ANTHONY THOMAS COOKE from performing any of the following controlled functions and/or key person roles (or equivalent) in the regulated sector in the Isle of Man:

• A prohibition from performing any controlled function about any regulated activity carried on, or proposed to be carried on, by a permitted person under section 10A of the FSA;
• A prohibition from performing any controlled function about any activity carried on, or proposed to be carried on, by an authorised insurer, a registered insurance manager or a registered insurance intermediary, under section 29A of the IA; and
• A prohibition from being a member of the governing body of a scheme under section 11B of the CISA.

1. Key Learning Points for Industry
1. The Authority expects any individual employed or in a position of responsibility within the regulated sector to demonstrate the strongest morals, ethics, and integrity consistently.
2. To avoid doubt, the Authority does not distinguish between dishonest actions that demonstrate a lack of integrity in the workplace and dishonest actions that show a lack of integrity in an individual’s private life not associated with their role(s) within the regulated sector.
3. Where the Authority identifies that an individual who is employed or engaged in a position of responsibility within the regulated sector has committed dishonest actions, it will give cause for the Authority to assess the seriousness of those actions and to consider whether those actions demonstrate that the individual lacks integrity. Where an individual lacks integrity, the Authority will consider whether to impose a prohibition.
4. When considering whether to exercise its power to prohibit an individual, the Authority will have regard to all the relevant circumstances of the case.
2. Background
   • Mr Cooke held the controlled function roles of head of compliance and money laundering reporting officer (all positions held from 2 December 2020 until 28 June 2022) of a Permitted Person licensed to undertake specific investment business by the Authority.
   • Mr Cooke pleaded guilty on 13 May 2022 to a criminal offence of ‘doing an act against justice’ (perverting the course of public justice) contrary to section 347 of the Criminal Code 1872 – a criminal offence involving dishonesty – and was sentenced on 28 June 2022.
   • During a compelled interview with the Authority on 27 June 2022 as part of an investigation, Mr Cooke admitted that he had between March 2021 and July 2021 on two separate dates, during contested ancillary relief proceedings as part of divorce proceedings,
     • deliberately altered (reduced) three (in total) separate estate agent property valuations for the family home, relying on those altered figures in sworn evidence (knowing that those altered valuations would be used) in those proceedings, thereby misleading the Court.
     • Those actions led to the criminal proceedings being brought against him.
   • Following his guilty plea to the criminal offence, Mr Cooke was subsequently sentenced at the Court of General Gaol on 28 June 2022 to an immediate custodial sentence of 30 weeks; such sentence was later reduced on appeal to 20 weeks of immediate custody.
3. Investigation conclusions

• Mr Cooke deliberately altered (reduced in value) a total of three estate agent property valuations for the family home (“the Altered Valuations”), such valuations being required by the Court;
• Mr Cooke deliberately forwarded the Altered Valuations to his then legal representative, knowing that those Altered Valuations would be used in court proceedings;
• Mr Cooke deliberately signed a witness statement exhibiting the Altered Valuations, knowing that his statement was untrue by his knowledge that he had altered the valuations contained therein and
• Mr Cooke deliberately relied upon the Altered Valuations in sworn evidence in those proceedings, thereby misleading the Court, which led to criminal proceedings being brought against him.

4. Statement

• The Authority has determined that the dishonest actions of Mr Cooke that led to his criminal conviction evidences his dishonesty and that this is consistent with a lack of integrity. The Authority is satisfied that the imposition of the prohibition reflects the severe nature of Mr Cooke's lack of integrity identified by the investigation.
• This public statement is intended to, among other things, encourage others to comply with the legal and regulatory requirements and obligations that are fundamental to the conduct of business in the regulated sector.

Action – full statements

Public Statement Concerning the Prohibition of Mr Anthony Thomas Cooke Published on: 02 January 2024 RE ANTHONY THOMAS COOKE

1. The Isle of Man Financial Services Authority (“the Authority”) makes this public statement by powers conferred on it under section 13 of the Financial Services Act 2008 (“the FSA”) and section 35 of the Insurance Act 2008 (“the IA”).
2. The issuance of this public statement and the action outlined below supports the Authority’s regulatory objectives of, among other things, securing an appropriate degree of protection for customers of persons carrying on a regulated activity, reducing financial crime and maintaining confidence in the Isle of Man’s financial services industry.
3. The Authority has deemed it reasonable, necessary, and proportionate to prohibit Mr Cooke under section 10A of the FSA, section 29A of the IA, and section 11B of the Collective Investment Schemes Act (“the CISA”). 
4. Mr Cooke is therefore prohibited from performing any of the following controlled functions and/or key person roles (or equivalent) in the regulated sector in the Isle of Man:
   • A prohibition from performing any controlled function about any regulated activity carried on, or proposed to be carried on, by a permitted person under section 10A of the FSA;
   • A prohibition from performing any controlled function about any activity carried on, or proposed to be carried on, by an authorised insurer, a registered insurance manager or a registered insurance intermediary, under section 29A of the IA; and
   • A prohibition from being a member of the governing body of a scheme under section 11B of the CISA.
   • The prohibition shall remain in force until Mr Cooke successfully applies to the Authority for a variance or revocation of the ban under section 10C of the FSA, section 29C of the IA and section 11D of the CISA.

Source - https://www.iomfsa.im/fsa-news/2024/jan/public-statement-concerning-the-prohibition-of-mr-anthony-thomas-cooke/