Tim Jones Quits as NEST Chief Executive | Chief Investment Officer

Tim Jones, chief executive of the UK’s National Employment Savings Trust (NEST), has quit his role after seven years with the organisation and its predecessor.

Jones will leave NEST at the end of this year to return to the digital payments sector, an area in which he worked for several years prior to joining the Personal Accounts Delivery Authority (PADA) in 2007.

As CEO of PADA, which became NEST in 2010, Jones oversaw the creation of the UK’s first national retirement savings fund, designed to aid the introduction of auto-enrolment.

A spokesperson for NEST said the organisation had begun a recruitment process for a new chief executive. Jones will remain in his role to oversee the transition until the end of 2015.

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“As the first CEO of NEST Tim has done a fantastic job,” said Otto Thoresen, chairman of NEST. “He has successfully taken NEST from the early stages of development through to the first key stages of delivery and established it as an integral part of auto-enrolment in the process.”

Jones said he was stepping down in order to “pursue a longstanding ambition to develop a global digital money product”, which will be launched next year.

“I’m very proud to have played a part in establishing NEST, and helping millions more people to save for their retirement,” he added.

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Craig Lax, ex-global head of execution, has admitted wrongdoing to settle the SEC’s claims that he oversaw systemic, deceptive overcharging of clients.

Another former executive of ConvergEx has been hit with charges from the US Securities and Exchange Commission (SEC) over what it calls “a fraudulent scheme” to skim hidden trading fees from clients.

Craig Lax, former CEO of G-Trade Services, a broker-dealer wholly owned by ConvergEx, has settled the charges, the SEC announced Monday. Lax admitted to wrongdoing and has agreed to a five-year ban from the securities industry. Additionally, Lax will pay more than $783,000 to settle the case, which concerned Lax’s leadership from January 2008 through August 2011.

G-Trade operates out of New York, where Lax was based, but would allegedly route trades through a now-defunct offshore affiliate to take hidden trading profits from the transactions.

The former executive went as far as to request false business cards for the subsidiary’s head of trading to give to clients, the SEC claimed, indicating the trader was based in New York, not offshore.

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Lax ceased working for ConvergEx in November 2013, according to a company spokesperson.

However, more than a year after CIO first reported that ConvergEx was charging both a commission and a spread on transitions, among other transactions, the company promoted Lax from CEO of G-Trade to global head of execution.

During his brief few months in that role, Lax gave a number of statements strikingly at odds with the SEC charges he has just settled. In a company press release touting a new trading product, Lax noted that “real‐time trading transparency is key to driving trading performance.” Likewise, another 2013 press release quoted him saying, “We work very hard to pioneer innovative solutions, offer full trade transparency, and maintain long-term and collaborative client partnerships.”

A ConvergEx spokesperson told CIO that the firm had “worked diligently under the direction of a new leadership team to rebuild our clients’ trust and move our business forward.” The company did not have any comment on Lax’s settlement or ban from the securities industry, but did note that it had “fully resolved this matter in late 2013.”

ConvergEx admitted wrongdoing when charged for the scheme by the SEC in 2013. It settled the regulatory and criminal fraud cases brought against the firm for $151 million.