The Financial Services Authority (FSA) has fined Nestor Healthcare Group £175,000 for failing to comply with provisions of the FSA’s model code.
The regulator said that Nestor failed to ensure that its board members and senior executives complied with share dealing provisions of the model code, which lays down minimum procedural standards.
The FSA found that the breaches occurred principally because Nestor’s weak procedures allowed for this policy to be forgotten by the board. This, with other factors, led to purchases of Nestor shares by board members, breaching of the code.
From October 2006 to June 2010 Nestor was listed on the main market of the London Stock Exchange. Under the listing rules, Nestor was required to take all proper and reasonable steps to secure the compliance of its persons discharging managerial responsibility with the code.
Nestor employed an informal approach to granting dealing approval and largely relied on the experience and knowledge of its directors to ensure that the appropriate compliance was met, which was inadequate and contributed to the company’s failings, the FSA said.
David Lawton, FSA director of markets, said: 'Regardless of their size, the FSA expects listed companies to meet their obligations under the listing rules and listing principles and ensure that the model code is complied with at all times.
‘Nestor’s own share dealing policy fell by the wayside, which the FSA regards as unacceptable. Listed companies should ensure their practices in this area are fit for purpose.'