Financial Conduct Authority (Respondent) v Markou (Appellant)

Case summary

Case ID

UKSC/2025/0035

Parties

Appellant(s)

Markos Markou

Respondent(s)

Financial Conduct Authority

Issue

Did the Court of Appeal err by (1) failing to ensure procedural fairness, (2) improperly interfering with the Upper Tribunal’s findings of fact, and (3) applying the wrong legal tests for recklessness and dishonesty?

Facts

The Appellant is the chief executive officer and the sole director and shareholder of Financial Solutions (Euro) Limited (“FSE”), a company engaged almost exclusively in the business of residential mortgage broking. The Respondent is the Financial Conduct Authority (“FCA”). The Appellant was approved by the FCA to perform certain regulated functions at FSE. On 29 January 2021, the FCA withdrew the Appellant’s approval to perform those functions, made an order prohibiting him from performing any regulated functions in the future, and fined him £25,000. In essence, the reasons for the FCA’s decision were that, between 24 November 2015 and 14 October 2017, the Appellant failed to have proper oversight of FSE’s regulated mortgage business by recklessly failing to: (a) implement FSE’s policies to combat mortgage fraud, (b) properly supervise the two mortgage advisors who carried out the day-to-day business of FSE, and (c) take sufficient steps to prevent FSE from transacting regulated mortgage business during a period in 2017 when he knew that FSE had no professional indemnity insurance cover in place. The FCA found that the Appellant’s conduct demonstrated a lack of integrity and that he was not a fit and proper person to perform any function in relation to any regulated activity. The Appellant referred the FCA decision to the Upper Tribunal. On 27 April 2023, the Upper Tribunal allowed the reference and remitted the matter to the FCA with various directions. The FCA appealed to the Court of Appeal. On 17 December 2024, the Court of Appeal allowed the FCA’s appeal in part, declined to remit the case to the Upper Tribunal, remade the original decision and decreased the fine to £10,000. The Appellant now appeals to the Supreme Court.

Date of issue

7 March 2025

Case origin

PTA

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