The Financial Conduct Authority (FCA) has fined the chief executive of Wise over failing to notify the regulator of “significant tax issues”.

The UK financial watchdog handed Kristo Käärmann a £350,000 penalty after he did not disclose that he had received a fine from HM Revenue & Customs (HMRC).

In 2021, HMRC fined Käärmann a sum of £365,000 for deliberately failing to notify the government body of a capital gains tax liability when he sold shares worth £10 million in 2017.

Following the penalty, HMRC added the Wise boss to its public tax defaulters list.

The FCA said that between February 2021 and September 2021, these matters, including the circumstances surrounding them, were relevant to the FCA’s assessment of Käärmann’s fitness and propriety.

Despite being aware of these issues for more than seven months, the chief executive failed to notify the regulator.

Therese Chambers, joint executive director of enforcement and oversight at the FCA said: "We, and the public, expect high standards from leaders of financial firms, including being frank and open. It should have been obvious to Mr Käärmann that he needed to tell us about these issues which were highly relevant to our assessment of his fitness and propriety.”

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