The FSA has fined Nestor Healthcare Group £175,000 for failing to ensure its board members and senior executives complied with the regulator’s share dealing rules.
The regulator says Nestor, which was listed on the London Stock Exchange between 18 October 2006 to 30 June 2010, had a policy on how staff intending to trade in the company’s shares should obtain clearance to deal.
The FSA found breaches occurred principally because Nestor’s “weak procedures” allowed for this policy to be forgotten by the board.
This led to purchases of Nestor shares by board members being carried out in breach of the regulator’s ‘model code’, which lays down minimum procedural standards.
It is the first time a penalty has been imposed on a company by the FSA for breaches of the listing rules and listing principles relating to compliance with the model code.
FSA director of markets David Lawton says: The model code is fundamental in helping directors and senior executives protect themselves against suspicion of abusing inside information.
“Regardless of their size, the FSA expects listed companies to meet their obligations under the listing rules and listing principles and ensure that the model code is complied with at all times.
“Nestor’s own share dealing policy fell by the wayside, which the FSA regards as unacceptable. Listed companies should ensure their practices in this area are fit for purpose.”