Release Date: 6th January 2015
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined Execution Noble & Company Limited (ENCL) £231,000 for breaches of the listing rules related to sponsors. The fine was issued due to ENCL’s failure to inform the FCA’s UK Listing Authority (UKLA) about the departure of two-thirds of its sponsor team, including key individuals responsible for leading and executing sponsor services, between June and November 2013. Despite these significant changes, ENCL continued to market itself as a competent sponsor during this period. This incident marks the first use of the FCA’s power to fine sponsors, a power introduced in 2013.
Key Points:
- Fine Issued: ENCL was fined £231,000.
- Reason for Fine: ENCL failed to notify the UKLA about the departure of critical sponsor team members and continued to present itself as a competent sponsor.
- Significance: This is the first instance of the FCA exercising its power to fine sponsors, which highlights the importance of transparency and cooperation with the regulator.
Key Takeaways for Other Firms:
- Timely Notification: Ensure prompt notification to the FCA of any material changes in staffing, especially those affecting critical roles.
- Transparency: Maintain an open and cooperative relationship with the FCA to uphold the integrity of the financial markets.
- Compliance: Adhere strictly to Listing Rules 8.3.5R and 8.7.8R (1) (a), which mandate being open and cooperative with the FCA and notifying relevant information in writing as soon as possible.
- Reputation Management: Avoid marketing services as competent if internal changes may impact the quality and capability of those services.
The FCA’s action against ENCL underscores its commitment to market integrity and the protection of consumers, reinforcing the need for firms to maintain high standards of regulatory compliance and cooperation.
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