FSA has fined The Prudential Assurance Company Limited (PAC) £16 million for its failure to inform FSA that Prudential Plc, its holding company, was seeking to acquire AIA from early 2010. FSA said that, because the transaction could have led to a change in PAC’s corporate controller, PAC was required to notify FSA at the earliest opportunity, which it did not. Prudential was concerned about the risk of leaks, and decided not to disclose the transaction in a meeting with FSA which focused specifically on Prudential’s Asian strategy. This omission amounted to a breach of Principle 11, which requires firms to deal with the regulators in an open and co-operative way. FSA needed to know of the planned acquisition to take the right regulatory decision and to assist overseas regulators with their enquiries on the transaction. Prudential Plc has been fined £14 million for a similar breach under the Listing Rules, and its CEO has been censured. (Source: Final Notice PAC and Press Release)