Print Article

“Root Causes” for JFSC regulatory failure

  • The JFSC expects boards and senior management of supervised persons to consider the findings and content of public statements against their arrangements to ensure compliance with all relevant statutory and regulatory requirements.
  • With the JFSC in mind, you should consider, as a minimum, the following notes [Lutea “Root Causes” for JFSC regulatory failure] from the public statements issued on Lutea’s [December 21ST, 2022] and two of its directors [Hodge and Hicks] in December 22ND 2023.

Lutea “Root Causes” for JFSC regulatory failure

  • The following JFSC regulatory failure “Root Cause” statements are taken from the JFSC Public statement issued on December 21ST, 2022, on Lutea Holdings Limited and Lutea Trustees Limited. [links below]
  • These root cause failures led to the addition of public statements [22 Dec 2023] against Ms Nicola Marguerite Hodge (Ms Hodge) and Mr Andrew Mark Hicks (Mr Hicks) [links below]

JFSC regulatory failure “Root cause” statements

  1. The Factors contributing to the JFSC’s conclusion include the following issues identified by the investigation:
  • The Lutea Board needed more diversity in its composition skills.
  • The Lutea Board needed a better understanding of requirements and best practices in governance, risk, and compliance matters.
  • The Lutea Board should have adequately considered potential conflicts, independence issues or cultural barriers at the Lutea Board level.
  • New appointments to the Lutea Board were typically internal appointments and/or accepting their first board position and had little impact on improving the diversity of skill sets.
  • New Lutea Board members received no formal induction on appointment, lacked personal development plans and needed to be provided with training to meet their development needs.
  • Lutea Board members had significant customer-facing responsibilities and worked in silos within the business.
  • Lutea’s culture was customer-led.
  • The Lutea Board should have prioritised risk and compliance matters and needed more cohesive and collective responsibility from the Lutea Board in this regard.
  • The Lutea Board considered compliance matters to be the ultimate responsibility of its compliance function.
  • The Lutea Board should have recognised compliance reporting as needing to be more adequate to enable it to exercise appropriate oversight of compliance matters.


  1. The JFSC has concluded that the root cause of Lutea’s regulatory and compliance failures was:-
  • The ineffective operation of the Lutea Board,
  • A lack of awareness of regulatory requirements and
  • An organisational culture without due regard for compliance.



The Team

Meet the team of industry experts behind Comsure

Find out more

Latest News

Keep up to date with the very latest news from Comsure

Find out more


View our latest imagery from our news and work

Find out more


Think we can help you and your business? Chat to us today

Get In Touch

News Disclaimer

As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email