Release Date: 7th April 2017
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined Lukhvir Thind £105,000 for engaging in market abuse through the dissemination of false information and has prohibited him from performing any functions related to compliance oversight and money laundering reporting. Thind, a chartered accountant and Financial Controller at Worldspreads Limited (WSL), falsified financial information concerning WSL’s client liabilities and cash position between 25 June 2010 and 16 March 2012. This led to materially inaccurate annual accounts for WSL and its holding company, Worldspreads Group plc (WSG).
Thind’s actions concealed a significant shortfall in client money, which by 31 March 2011 amounted to £15.9 million, and WSG lacked the funds to cover this shortfall. Thind’s dissemination of false information included altering internal financial reports and misleading auditors to present a more favourable financial position of WSL and WSG. This behaviour was deliberate and reckless, significantly misleading the market and contributing to the firms’ financial collapse in March 2012.
Key Takeaways for Other Firms:
- Maintain Integrity: Ensure all financial reports and statements are accurate and truthful.
- Robust Oversight: Implement stringent oversight mechanisms to prevent and detect falsification of financial information.
- Auditor Interaction: Maintain transparent and honest communication with auditors.
- Client Money Protection: Adhere strictly to client money rules to avoid misuse and shortfalls.
- Compliance Culture: Foster a culture of compliance and ethical behaviour throughout the organisation.
In conclusion, the FCA’s action against Lukhvir Thind underscores the importance of integrity and transparency in financial reporting. Firms must ensure robust internal controls and a strong compliance culture to prevent similar breaches and maintain market confidence.
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