“Our evaluation of our factual findings leads to the conclusion that they cannot support any finding of a lack of integrity on Mr Forsyth’s part.”
Those were the words of Upper Tribunal Judge Timothy Herrington in the 98-page unanimous decision made alongside Member Jo Neill and Member Peter Freeman in Stuart Malcolm Forsyth v The Financial Conduct Authority and The Prudential Regulation Authority.
The Tax and Chancery case centred on whether Forsyth – in his previous capacity as chief executive of the Scottish Boatowners Mutual Insurance Association (SBMIA) – demonstrated a lack of integrity in relation to issues arising out of his wife’s employment by the small mutual insurance firm.
The proceedings stemmed from the Financial Conduct Authority (FCA) and Prudential Regulation Authority’s (PRA) respective decisions in 2019 to prohibit Forsyth from performing any function in relation to regulated activities. The FCA also imposed a £78,318 fine; the PRA, £76,180.
DAC Beachcroft partner Jonathan Brogden, who had conduct of the case for the insurance veteran throughout, asserted, “The Tribunal’s judgment serves as vindication of Mr Forsyth’s conduct. He has always maintained that he acted properly, that everything he did was with his employer’s full knowledge and understanding, and that he did not at any time seek to mislead the PRA.
“The Tribunal has found, on consideration of all the evidence, that Mr Forsyth was and always has been telling the truth. The regulators’ judgement in this case was poor and the way they have treated Mr Forsyth, right through to the trial, has been unacceptable. The regulators have a lot to learn from this case, and I genuinely hope they take onboard the Tribunal’s findings and criticisms.”
In response to the ruling, the PRA said it accepts the findings that it took a “flawed approach” in relation to identifying material held in the case.
“These errors resulted in the late disclosure of certain materials, for which we have apologised to both Mr Forsyth and to the court,” stated the regulator. “The Upper Tribunal has referred this matter back to the PRA which will consider the matter in light of the Upper Tribunal’s finding that Mr Forsyth did not act without integrity.”
The FCA, meanwhile, has not published a statement as of this writing.
Forsyth, who was CEO of SBMIA for more than 15 years until July 2016, had this to say: “Before this case I had a 30-year unblemished career in the marine insurance industry. Over the years of being subjected to the regulators’ scrutiny, I have consistently maintained my innocence of the serious allegations levelled at me.”
“I am relieved that through the expertise and experience of the Upper Tribunal it has been determined as a matter of fact that I have done nothing wrong,” he continued. “My wife and I have been through a hellish experience in this case, which seems to me to have resulted from the regulators’ flawed judgement.
“It has only been through sheer determination, the unwavering support of my wife, and the support and expertise of my legal team at DAC Beachcroft and Blackstone Chambers that I find myself fully vindicated.”
Forsyth’s career began in 1988 at Willis Faber where he was an insurance broker. His credentials include time spent at RSA Insurance Group, which was his employer at the time of the PRA and FCA decision notices.
“I look forward to resuming my unblemished career in the marine insurance industry as soon as possible,” added Forsyth, who left RSA following the watchdogs’ decisions and has not worked as an insurance industry professional since.
“I genuinely hope the regulators learn from the errors they made in my case and work to restore the faith of regulated professionals in its competence, processes, and procedures as I would not want anyone else to go through what I have been through.”
