FSA unveils fines for listing breaches

The changes will radically alter the way companies are punished for breaches such as failing to publish price-sensitive information.

Under existing rules, companies and their directors face either censure or a suspension of the company’s shares, penalties which do not help investors.

The proposals follow the transfer of the UK listing authority to the FSA last year.

Paul Geradine, the FSA’s director of listings, said: ‘In those instances where the listing rules have been breached, financial penalties will be a very effective way of emphasising our view of the seriousness of these breaches.’

The proposals were welcomed by industry experts.

Tony Fry, head of new issues in KPMG’s transaction services department, said: ‘The UK listing authority now has some teeth it can really use.’

But the prospect of fines could increase directors’ personal indemnity insurance premiums.

According to Fry: ‘In time, the changes could have an effect on insurance costs.’


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To see the full proposals, go to

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