FSA issues first ever ‘due care’ fine against FD

, the former finance director at stockbroker
Williams de Broë, has been fined £30,000
by the Financial Services Authority for
‘failing to exercise due skill care and diligence in carrying out his role’ when
the threat of insolvency loomed over the business.

This was the first such fine imposed by the FSA for such an offence against a
senior executive from a sizeable business – it has penalised other
executives for offences such as misconduct and market abuse in the past.

Whistance was blamed for Williams de Broë making provisions of £66.3m in its
accounts for 2004 and 2005 against assets it said were ‘irrecoverable’.

The FSA said: ‘Mr Whistance’s failure to carry out his responsibilities to
the required standard resulted in the firm being unable to monitor its own
financial position and comply with its regulatory reporting requirements.’

Further reading:

ING bank faces FSA fine over controls

FSA to debate light-touch reputation with City

FSA throws out ‘light’ hedge fund regime

Related reading