In the matter of Thomas Seiler & Ors.

Introduction Background 1 Alleged misconduct and the Applicants’ position 9 Structure of this decision 27 Applicable law and regulatory provisions General 30 Prohibition 32 Fitness and propriety 35 Law relating to integrity 41 Issues to be determined and the role of the Tribunal Role of the Tribunal 51 Issues to be determined 56 Standard and burden of proof 57 Evidence Approach to evidence and contemporary documents 59 Witnesses for the Authority 68 The Applicants’ evidence 69 Absence of potential witnesses 93 The Authority’s investigation 115 Documentary evidence 154 Findings of Fact Swiss private banking for politically exposed persons 155 Julius Baer: relevant background 163 Yukos: relevant background 168 Julius Baer’s management structure and reporting lines 176 Relevant Julius Baer policies and procedures 196 Role and experience of each Applicant 223 Events prior to the Relevant Period Opening of accounts for Mr Merinson and Yukos Capital 273 The “Veto Letter” 318 Events during the Relevant Period The negotiation of Mr Merinson’s Finder’s fee 334 The Finder’s Agreement and opening of the Yukos Capital 378 and BJB Bahamas accounts The First FX Transaction and the First Commission Payment 410 BJB request for confirmation letters 566 Proposals for the Second FX Transaction and the amendment of 574 Mr Merinson’s Finder’s agreement The Second FX Transaction 639 Approval of the Second Commission Payment 652 Mr Fellay’s concerns 677 The Second Commission payment to Mr Merinson and the 689 proposed “framework” Preparation of a Finder’s agreement for Mr Merinson 715 with BJB Bahamas Mr Merinson’s request to amend the Finder’s agreement 721 Mr Feldman’s request for a commitment to confidentiality 749 Payments from Mr Merinson to Mr Feldman 769 The Third FX Transaction and the Third Commission Payment 782 Mr Campeanu’s email of 30 November 2012 and Mr Seiler’s response 785 Evaluation of the Facts Introduction 800 Mrs Whitestone 807 Mr Seiler 841 Mr Raitzin 880 Conclusion 907 Directions 909 Postscript: s 133A (5) FSMA 918