The Financial Services Authority (‘FSA’) has published a Final Notice (dated 16 August 2011) imposing a penalty of £210,000 on Sir Ken Morrison, the former chairman of Wm Morrison Supermarkets Plc (‘the Company’), for breach of the Disclosure and Transparency Rules (‘DTR’) resulting from a failure to disclose his reduced shareholding and voting rights in the Company5. Although Sir Ken’s voting rights had fallen below the notifiable thresholds respectively of 6%, 5%, 4% and 3% during a period between September 2009 and June 2010, he failed to notify the Company of these occurrences until 1 March 2011. The delay meant that the Company was not in a position to update the market in accordance with the requirements of DTR 5.8.12(1) R and that Sir Ken’s shareholding in the Company was incorrectly stated in its annual report of 31 January 2010. The penalty would have been greater had Sir Ken not co-operated with the FSA and agreed to settle at an early stage, thereby qualifying for a 30% reduction.  

FSA Final Notice available at: http://www.fsa.gov.uk/pubs/final/sir_ken_morrison.pdf