The Supreme Court has refused to hear a Financial Conduct Authority (FCA) appeal which brings an end to its unsuccessful case against three former Julius Baer Group employees.

The City watchdog fined private bank Julius Baer more than £18m over its “corrupt” dealings with Russian oil company Yukos Group back in 2022.

In addition to the fine, the regulator also imposed bans on three of Julius Baer’s former executives, ex-regional head Gustavo Raitzin, former sub-regional head for Russian and Eastern Europe Thomas Seiler, and ex-relationship manager Louise Whitestone.

The FCA alleged that the bank’s conduct in its relationship with the Yukos Group demonstrated a “lack of integrity”, and accused the three individuals of acting “recklessly”.

Seiler, Whitestone and Raitzin challenged the FCA’s notice by appealing to the Upper Tribunal, which ruled in June 2023 that the individuals were not aware of the relevant risks and did not act recklessly.

In a damming ruling, the Tribunal criticised the FCA’s investigation, including its failure to gather relevant documents and its approach to witnesses. It also added recommendations for the FCA to review its disclosure processes in regulatory enforcement cases.

In a further costs decision handed down in November 2023, the Tribunal made a “rare order” that the regulator had to pay a portion of Seiler and Whitestone’s costs on the basis that it acted unreasonably.

The FCA went on to seek an appeal against the Upper Tribunal’s costs order, but the Court of Appeal dismissed its appeal last July.

The City regulator then went on to seek an appeal at the highest court in the UK, the Supreme Court.

However, the court revealed on Friday that it refused permission to the FCA on 29 November as the appeal does not raise an arguable point of law, bringing the end of the legal road for the FCA.

This comes on the back of the FCA providing an outcome in November from its enforcement regulatory disclosure review which was prompted by the Upper Tribunal recommended in this case.

The regulator stated it made a number of changes to its processes, including taking a broader approach to disclosure, enhancing existing training on disclosure, and clarifying the roles and responsibilities of staff and managers involved in disclosure.