The FSA has fined and banned two former directors of Cattles plc and its subsidiary Welcome Financial Services Limited (WFSL), for publishing misleading information to investors in relation to the credit quality of WFSL’s loan book. The two companies have also been publicly censured.
The Finance Director for Cattles plc, James Corr, has received a fine of £400,000 and the Finance Director for WFSL has been fined £200,000. Both directors have been banned from performing any further functions in relation to any regulated activities. The FSA also fined John Blake, the MD for WFSL, £100,000 and has banned him from performing any further regulated function. The FSA found that a number of the market abuse, listing and disclosure rules and core Principles for Businesses were breached.
Tracey McDermott, acting director for enforcement and financial crime for the FSA said, “In order for markets to function properly, information given to investors must be accurate. Directors of listed companies must act with integrity and exercise appropriate diligence when making disclosures to the market.”
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http://www.fsa.gov.uk/static/pubs/final/james-joseph-corr.pdf http://www.fsa.gov.uk/static/pubs/final/peter-douglasmiller. pdf http://www.fsa.gov.uk/static/pubs/final/cattlesltd. pdf http://www.fsa.gov.uk/static/pubs/final/welcomefinancial- service.pdf http://www.fsa.gov.uk/static/pubs/ decisions/john-blake.pdf