David Whistance, former FD of W Deb MVL, was also accused of a failure to take reasonable steps to ensure the firm’s accounting procedures and records complied with regulatory requirements. The failings occurred over a three and a half year period from 1 December 2001 to 3 May 2005.
His failures resulted in the firm being unable to monitor its own financial position and to comply with its regulatory reporting requirements. This resulted in the firm making total provisions of £66.3m in its accounts for 2004 and 2005 against assets viewed as irrecoverable.
These led to concerns about the firm’s solvency and to its former parent company, ING, waiving loans totalling £58m to ensure it remained adequately capitalised. WDM was fined £560,000 in January for breaching FSA Principles.
FSA director of enforcement Margaret Cole says: “The FSA holds senior management of regulated firms responsible for ensuring their firms are organised competently in order to meet their regulatory obligations. Failure by senior management to properly perform their roles poses a risk to the firm’s financial health, the interests of their clients and ultimately to the UK’s financial system.”