Release Date: 20th January 2015
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined Reckitt Benckiser Group Plc (RB) £539,800 for failures in their systems and controls to monitor share-dealing by senior executives. These inadequacies led to late and incomplete disclosures to the market regarding share dealings by two senior executives, breaching key listing, disclosure, and transparency rules, as well as the Model Code, which prevents the abuse of inside information.
Key Points:
- Fine Issued: Reckitt Benckiser Group Plc was fined £539,800.
- Reason for Fine: Inadequate systems and controls to monitor share-dealing by senior executives, leading to delayed and incomplete market disclosures.
- Rule Breaches: Breaches in the listing, disclosure, and transparency rules, and failure to comply with the Model Code.
Key Takeaways for Other Firms:
- Robust Monitoring Systems: Implement strong systems and controls to monitor share-dealings by senior executives.
- Timely Disclosures: Ensure that share-dealings are disclosed to the market by the end of the next business day.
- Adequate Training and Records: Maintain comprehensive records and provide thorough training to ensure compliance with the Model Code and other regulations.
- Proactive Compliance: Regularly review and update compliance procedures to align with FCA expectations and avoid regulatory breaches.
The FCA’s action against RB highlights the necessity for listed companies to have effective controls and training in place to monitor and disclose share dealings promptly, ensuring market fairness and transparency.
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