Money transfers provider Wise on Monday said the UK regulator is investigating its chief executive after a tax breach.
Wise said the UK Financial Conduct Authority has opened an investigation into Co-Founder & Chief Executive Officer Kristo Kaarmann.
Wise said that UK tax collector HM Revenue & Customs in September of last year updated its published list of individuals and businesses receiving penalties for a deliberate default regarding their tax affairs. Kaarmann was included on the list and will remain so for 12 months from its publication.
Following Kaarman’s inclusion on the list, the board of Wise had conducted an investigation with the help of external legal counsel and shared the findings of this with the FCA.
Wise said Kaarmann intends to cooperate fully with the FCA in its investigation.
Chair David Wells commented: ‘The board takes Kristo’s tax default and the FCA’s investigation very seriously. After reviewing the matter late last year the board required that Kristo take remedial actions, including appointing professional tax advisors to ensure his personal tax matters are appropriately managed.
‘The board has also shared details of its own findings, assessment and actions with the FCA and will cooperate fully with the FCA as and when they require, while continuing to support Kristo in his role as CEO.’
Wise is a London-based company offering international money transfers. It recently rebranded from TransferWise and listed on the London Stock Exchange back in July of last year.
Wise shares were down 1.9% early Monday. They are down 57% since listing.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.5% at 7,247.04
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Hang Seng: up 2.4% at 22,225.23
Nikkei 225: closed up 1.4% at 26,871.27
S&P/ASX 200: closed up 1.9% at 6,706.00
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DJIA: closed up 823.32 points, or 2.7%, at 31,500.68
S&P 500: closed up 3.1% at 3,911.74
Nasdaq Composite: closed up 3.3% at 11,607.62
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EUR: up at $1.0562 ($1.0549)
GBP: down at $1.2273 ($1.2282)
USD: flat at JP¥135.08 (JP¥135.10)
GOLD: up at $1,836.21 per ounce ($1,830.41)
OIL (Brent): down at $112.93 a barrel ($113.44)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday’s key economic events still to come
G7 summit in Germany continues.
0830 EDT US advance report on durable goods
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UK Prime Minister Boris Johnson has entered a new week hoping to put two tough by-election defeats behind him, as he seeks to bolster faith in his leadership for the time being – if not into the next decade. Johnson is meeting counterparts at the G7 summit in Germany on the latest leg of a series of international gatherings which have kept him out of the UK, as questions loom over his future. An announcement on steel tariffs is also expected in the coming days, which the PM is reportedly plotting to please voters in Labour heartlands. Johnson has insisted the ‘golden rule’ is to ‘focus on what we are doing’ after raising eyebrows by revealing he has ambitions to remain in office into the 2030s.
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Bank of Japan members expect to see a recovery in the nation’s economy as the pressure of the Covid-19 pandemic and supply-side constraints; however the rise in commodity and raw material prices will remain an issue, minutes from the central bank’s June meeting showed. At the meeting, the Bank of Japan decided to keep in place its target rate of minus 0.1% – part of a decade-old action plan aimed at boosting the world’s third-largest economy – bucking pressure to address the impact of a weaker yen. The decision was made by an 8-1 vote. Minutes from the June meeting showed that bank members remain bullish about Japan’s prospects post-pandemic, already seeing a pickup in the private sector, particularly in services as hospitality firms look forward to government support measures.
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BROKER RATING CHANGES
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Liberum raises Whitbread to ’buy’ (hold)
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RBC cuts Go-Ahead to ’sector perform’ (outperform) - price target 1,600 (1,000) pence
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Jefferies cuts Naked Wines price target to 250 (800) pence - ’buy’
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COMPANIES - FTSE 100
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AstraZeneca said its Lynparza treatment has been recommended for approval in the European Union by the Committee for Medicinal Products for Human Use for early breast cancer treatment, after positive phase-three results. Lynparza also demonstrated a statistically significant and clinically meaningful improvement in overall survival, reducing the risk of death by 32% versus placebo, the drugmaker said. Separately, AstraZeneca said its Enhertu drug also has been recommended for approval in the European Union for patients with breast cancer. The CHMP based its positive opinion on results from the Destiny-Breast03 phase three trial, which were published in The New England Journal of Medicine. The trial results showed that Enhertu reduced the risk of disease progression or death by 72% compared with the trastuzumab emtansine drug. Lynparza was co-developed by AstraZeneca with Merck & Co, while Enhertu was jointly developed with Daiichi Sankyo.
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GSK announced positive interim results from its B-Clear phase IIb trial, which tested bepirovirsen as a treatment of chronic hepatitis B. Interim analysis from the trial showed that bepirovirsen had reduced levels of the hepatitis B surface antigen and hepatitis B virus DNA after 24 weeks of treatment in people with hepatitis B. Chronic hepatitis B is a viral infection of the liver, and occurs when the body’s immune system is unable to fight off the virus, and can progress to further complications including cirrhosis and liver cancer. Looking ahead, GSK is planning to evaluate bepirovirsen as a monotherapy, in a phase III trial which is expected to start n the first half of 2023.
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COMPANIES - FTSE 250
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PZ Cussons said trading for the fourth quarter to May 31 has continued to be in line with expectations despite a challenging trading environment. The maker of products such as Carex, St Tropez and Imperial Leather expects revenue for the financial year of £590 million, with full-year like-for-like revenue growth of 3% and fourth-quarter LFL growth of 7%. PZ Cussons recorded revenue of £603.3 million in financial 2021. PZ Cussons said growth continues to be driven primarily by improvements in price mix, with limited impact on volumes. Its expectations for annual adjusted pretax profit are unchanged. Chief Executive Officer Jonathan Myers said: ‘The trading environment continues to be challenging, with high input cost inflation and pressures on household budgets. We have plans in place to mitigate the impact of this, as we continue to deliver great value for consumers, whilst also investing behind more premium innovations.’
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COMPANIES - SMALL CAP
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Business events organiser Hyve said the post-pandemic recovery of in-person events has ‘considerably ahead of anticipated levels’. Momentum from the first half of its financial year has continued in the third-quarter, which started on April 1, it said. Revenue in the period showed a full recovery on a pro-forma basis, Hyve said. Forward bookings for all of financial 2022 total £122.3 million, which excludes August events in China due to Covid restrictions and all events in Ukraine due to the war. ‘I am pleased to report another quarter of strong trading,’ said CEO Mark Shashoua. ‘The trends we saw emerge post-pandemic continue to hold true - in particular, our customers continue to spend more with us than before, demonstrating the huge value which in-person events offer and proving that our strategy of focusing on only market-leading events is paying off.’
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Monday’s shareholder meetings
Anglo-Eastern Plantations PLC - AGM
Celadon Pharmaceuticals PLC - AGM
Cizzle Biotechnology Holdings PLC - AGM
Echo Energy PLC - AGM
Medica Group PLC - AGM
Pelatro PLC - AGM
Surgical Innovations Group PLC - AGM
Warpaint London PLC - AGM
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