A former head of passive equity at HSBC Asset Management has been banned from working in financial services after being convicted of train fare fraud.
Joseph Molloy, 53, was convicted of fraud by false representation after avoiding £5,900 in train fares.
The FCA said Mr Molloy’s conviction, “demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities.”
He used what prosecutors described as a 'sophisticated' ticketing ruse to cut thousands of pounds off the cost of commuting from his home in Orpington, south London, to HSBC's headquarters in Canary Wharf.
In a tactic known as 'doughnutting', he bought tickets covering the start and end of his route, but not the stations inbetween. He also secured Jobcentre Plus discounts giving him 50% off fares.
Between October 2023 and September 2024 he used his fare avoidance scheme for at least 740 journeys, evading revenue of £5,911 in total, the court heard.
On 17 February, Mr Molloy was sentenced at Inner London Crown Court to 10 months’ imprisonment, suspended for 18 months.
He was also prohibited from travelling on Southeastern rail for 12 months; ordered to carry out 80 hours of unpaid work and undertake 10 rehabilitation activity days; and ordered to pay costs of £150, a victim surcharge of £187, and compensation to Southeastern of £5,000.
At the sentencing hearing the judge said the fraud was “sophisticated, with considerable planning, conducted over a period of almost 12 months.”
Mr Molloy claimed he was experiencing difficult personal circumstances at the time of his offending and pointed out he had ceased the activity of his own volition. The judge said he had shown genuine remorse.
Mr Molloy also informed the FCA that he accepts that he fell below the standards of behaviour expected by the Authority.
Mr Molly had been approved by the regulator since 2001 until 2019 to perform controlled functions at various authorised firms. According to the FCA Register, these included investment management at Gulf International Bank, State Street Global Advisors, Northern Trust Global Investments, Legal & General Investment Management and HSBC Global Asset Management.
Between 19 June 2020 and 18 June 2025, Mr Molloy was a certified person at HSBC Global Asset Management where he was certified to hold the functions of managing other certified employees and client dealing.
After the FCA notified Mr Molloy of its decision to ban him from working in financial services he did not refer the matter to the Tribunal. Accordingly, the prohibition order took effect from 1 October.