In 2021 the FCA published a Decision Notice in respect of Markos Markou (MM), director and chief executive of a mortgage broker firm, Financial Solutions (Euro) Limited, seeking to impose a fine of £25,000. It also withdrew approval for MM to perform controlled functions at the company at which he was a director and chief executive and banned him from working in financial services.

MM referred the matter to the Upper Tribunal which asked for the FCA to reconsider the proposed ban and directed that a fine should not be imposed. The FCA appealed the tribunal's decision to the Court of Appeal on five grounds.

Ground 1 related to the scope of the tribunal's jurisdiction under section 133 of the Financial Services and Markets Act 2000 (FSMA). The Court of Appeal said that this issue had been overtaken by the decision in FCA v Bluecrest Capital Management (UK) LLP [2024] EWCA Civ 1125 and the test set out about the "matter" referred. That test was met in Markou. The FCA therefore succeeded on Ground 1, but this was insufficient by itself to justify the Court of Appeal interfering with the tribunal's decision.

The other grounds of appeal related to the tribunal's exoneration of MM from recklessness and its conclusion that he did not lack integrity. 

The Court of Appeal found that the FCA did establish that MM was reckless and that his recklessness demonstrated a lack of integrity.  Therefore, it was appropriate for the court to dismiss the reference regarding the FCA's decision to withdraw the approval given to MM to perform certain functions and relating to the FCA's decision to make an order prohibiting him from performing any function in relation to any regulated activity carried out by an authorised person, exempt person or exempt professional firm. However, the court also said that because not all the allegations made were proved, the level of the appropriate financial penalty to be imposed on MM should be adjusted to reflect this. The court remitted the matter to the FCA with a direction to impose a lesser financial penalty of £10,000 on MM.

The FCA has said that it welcomes the Court of Appeal's judgment.