Millionaire Fund Manager Gets Banned from FCA for Train Fare Manipulation

The Financial Conduct Authority, the UK's main regulator for financial services, has banned an experienced fund manager from performing any functions relating to regulated financial products on the grounds of not being fit and proper. The move signifies the importance of honesty and integrity in the financial sector.

Jonathan Paul Burrows, the Managing Director of a leading asset management firm, Blackrock Asset Management Investor Services Limited, was found guilty of breaching the law by failing to purchase adequate transport tickets for his journey on the train. Burrows was interviewed by law enforcement officers and disclosed details of his wrongdoings.

Tracey McDermott, the FCA's Director of Enforcement and Financial Crime, commented in the official briefing: "Burrows held a senior position within the financial services industry. His conduct fell short of the standards we expect. Approved persons must act with honesty and integrity at all times and, where they do not, we will take action."

Details issued by the FCA show that the guilty party was stopped by a Revenue Protection Officer at the exit gates of London Cannon Street Station and was found to have failed to purchase a valid ticket for the entire journey whilst travelling on the Southeastern train service from Stonegate railway station, East Sussex. Burrows was interviewed under caution and admitted to having evaded his rail fares on a number of occasions.

The veteran fund manager, whose career dates back to the 1990s, is believed to have defrauded the system amounting to over sixty thousand dollars worth of costs.

The UK is recognised for its established financial markets sector due to its sophisticated regulatory environment and governing principles. The country has been a magnet for international providers setting up shop in the UK, taking advantage of MiFID which gives it access to the wider European market.

Financial markets have been subject to extensive regulatory oversight following the Libor and FX rates fixing cases, investigations showing that senior members of banking organisations have breached basic laws of ethics in their mafia-style disruption of the daily currency fixing rates.

The FCA issued fines to major banks in November alongside its US counterpart. Since taking over from the FSA it has put greater emphasis on the way firms carry out regulated activities, recently issuing a new strategy document outlining major restructuring.