Finance regulator fines Sir Ken over Morrisons share dealings
The Financial Services Authority said Sir Ken, who retired in 2008, had failed to disclose shares sales in 2009 and 2010 which reduced his holding in the company from 6.4 per cent, a holding worth over £450m, to 0.9 per cent.
The FSA said Sir Ken, whose father founded the Bradford-based chain, had not financially benefited from the breaches, but his failure to notify Morrisons of the changes prevented the company from updating the market in accordance with Stock Exchange rules.
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Hide AdTracy McDermott, the FSA’s acting director of enforcement and financial crime, said: “Investors are entitled to know when major and influential shareholders significantly reduce their interest in a listed company.
“Sir Ken should have been aware of his obligations and his failure to meet them has resulted in this fine,” she added.
Under FSA rules anyone with over a three per cent stake in a company must tell the market if their holding increases or decreases by one per cent.
Sir Ken’s fine was reduced from £300,000 as he agreed to settle early, which qualified him for a 30 per cent reduction.
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Hide AdThe FSA said Sir Ken failed to notify Morrisons on four separate occasions when his voting rights fell below six per cent, five per cent, four per cent and three per cent, as he should have done.
The fine brings to an end a four month investigation about the share dealing.