The Qatar Financial Centre Regulatory Authority has taken disciplinary action against the former chief executive of Guardian Wealth Management Qatar (GWMQ), David Russell.
The $50,000 (£37,887, €41,985) penalty and three-year ban from carrying out a controlled function in the financial centre were the result of an investigation, which found Russell’s conduct “fell below the standard of conduct required of a senior manager under the regulatory authority’s rules”.
According to the QFC Regulatory Authority, this included:
- Failing to act with due skill, care and diligence in relation to his oversight of GWMQ’s compliance with the Regulatory Authority’s requirements; and,
- Failing to deal with the Regulatory Authority in an open and cooperative manner and keeping it promptly informed of any matters relating to GWMQ of which the regulator would reasonably expect notice.
Russell appealed the decision, but it was dismissed by the QFC Regulatory Tribunal, which noted the penalty and prohibition were appropriate.
However, given issues of financial hardship and the exceptional circumstances related to covid-19, the Tribunal commuted the fine.
Prolonged departure
The regulatory action taken against Russell is likely the final step in the firm’s long-running exit from the Gulf state.
Guardian Wealth announced it intended to exit the Qatar market in December 2015 and initiated liquidation proceeding in 2016.
In April 2018, it was hit with a QAR2.5m (£516,417, $681,522, €572,273) fine for contraventions to anti-money laundering/combatting the financing of terrorism (AML/CFT) rules.
An additional QAR1.09m was levied for “general regulatory contraventions”.
Guardian was also told to cover the costs and expenses the investigation has incurred.
The company suggested at the time that the fines were in retaliation to its decision to pull out of the country.
In July 2019, co-chief executives David Howell and John Hasberry were each fined $200,000 and banned for three years.
Guardian Wealth Management was subsequently sold in March 2020 to a private equity vehicle managed by Skybound Capital, at which time a new executive management team was put in place.
The sale saw Howell, Hasberry and managing director Gavin Pluck leave the business.
The firm has been renamed GWM and has operations in the UAE, Switzerland, the US and the UK.
