The FCA has published a Decision Notice against Angela Burns, a former non-executive director, deciding to ban and fine her £154,800 for failing to disclose her conflicts of interest in breach of Principle 1 of the FCA’s Principles for Businesses.

In 2006, Ms Burns completed a consultancy project for a US based investment manager. Shortly after completing the work she asked the investment manager for the opportunity to turn her proposal into a UK business, however this was declined and in September 2008 she put forward a proposal outlining the consultancy work that she could do for them.

In January 2009 and May 2010, Ms Burns became a non-executive director (NED) and chair of the investment committee for two UK mutual societies. Upon taking up her NED positions Ms Burns notified the investment manager of her new roles and renewed her request for consultancy work. Ms Burns did not tell the mutual societies that she was at the same time trying to obtain work from the investment manager. In the FCA’s opinion, Ms Burns attempted to use her NED positions to benefit herself when she emailed the investment manager about potential business opportunities at the mutual societies and expressed her interest in obtaining consultancy work. The FCA considered that Ms Burns had a duty to disclose her interest in seeking consultancy work from the investment manager to her fellow mutual societies’ directors. She also attempted to use her NED positions to benefit herself. In the FCA’s view, given the serious nature of these breaches, these failures demonstrate that Ms Burns lacked integrity.

Ms Burns had applied to the Upper Tribunal for an order preventing the FCA from publishing the Decision Notice which was rejected. Ms Burns has also referred the matter to the Upper Tribunal where she and the FCA will each present their case.

A copy of Ms Burns’ Decision Notice is available.

http://www.fca.org.uk/static/documents/decision-notices/angela-burns.pdf