FCA Concludes Investigation of Wise CEO Kristo Käärmann

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 followed a September 2021 notice from HM Revenue & Customs (HMRC) stating that Käärmann had received penalties for deliberate tax default for the tax year 2017/2018. The issue 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. However, the FCA did not find 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 was reduced by 30% to £350,000 due to Käärmann's early agreement to settle. The FCA stated that the reduced fine serves as a credible deterrent.

Wise's Board Chair, David Wells, expressed satisfaction with the FCA's conclusions, which aligned with the company's internal investigation findings. The Board had determined that Käärmann remained fit for his roles at Wise and had taken necessary remedial actions regarding his tax affairs.

Käärmann emphasized his commitment to Wise’s mission and long-term vision, noting 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.

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