LONDON - The UK Financial Conduct Authority (FCA) has concluded its investigation into Wise PLC co-founder and CEO Kristo Käärmann regarding his personal tax affairs. The FCA's inquiry, which followed a September 2021 notice from HM Revenue & Customs (HMRC) that Käärmann had received penalties for deliberate tax default for the tax year 2017/2018, has been resolved with a £350,000 fine.
The FCA determined that Käärmann should have informed Wise's regulated subsidiaries and the FCA itself by February 2021 about his communications with HMRC. Despite this, the FCA did not find any evidence suggesting that Käärmann's ability to fulfill his role at Wise was compromised or that he acted without integrity.
Initially, the penalty was set at £500,000, but it was reduced by 30% to £350,000 due to Käärmann's early agreement to settle. The FCA has stated that the reduced fine is intended to serve as a credible deterrent.
Wise's Board Chair, David Wells, expressed satisfaction with the FCA's conclusions, which align with the company's own findings from an internal investigation conducted after Käärmann's name appeared on the HMRC list. The Board had determined that Käärmann remained fit to continue his roles at Wise and had taken necessary remedial actions regarding his tax affairs.
Käärmann commented on the resolution, emphasizing his commitment to Wise's mission and long-term vision. He noted that the process, which spanned several years, concluded with full cooperation with the FCA.
The FCA is expected to publish the findings on its website. This settlement closes the matter completely, with no further implications for Käärmann's role at Wise. The information for this article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.