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Sandler firm Kyte fined 250k by FSA

A company chaired by stakeholder reformer Ron Sandler has been hit with a 250,000 fine by the FSA.

The regulator found that between 2001 and 2003, derivatives broker Kyte Group breached FSA rules by failing to properly reconcile client money balances and segregate the correct amount of money on behalf of its clients.

It also failed to take “reasonable care” to maintain adequate accounting records, which resulted in Kyte’s balance sheet being out by about 7.2m for the year ended April 2003.

Sandler, also on the board of defined-benefit consolidator Paternoster, became a controversial figure in the industry as the driving force behind stakeholder reforms.

A Kyte spokesman says the management acknowledges failings in its finance department but says the fine is “disproportionate” as no customers were harmed and it took immediate steps to rectify the matter once it came to light in 2003. Chief executive Peter Green says: “As non-executive chairman, Ron Sandler has absolutely no day-to-day responsibility for the finance department.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “It is encouraging to discover the FSA has such a finely developed sense of irony. Can we now look forward to the CML’s offices being repossessed and the ABI’s premises getting flooded?”

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