Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

FSA fines Gracechurch boss after clients lose £2m on small-caps

by Annabelle Williams on Dec 20, 2012 at 12:38

FSA fines Gracechurch boss after clients lose £2m on small-caps

The Financial Services Authority (FSA) has handed a £450,000 fine to the chief of Gracechurch Investments after it pressured clients in to investing in small cap stocks.

Clients made losses of at least £2 million and the FSA said the fine would have been as much as £1.5 million if Gracechurch had not already been in liquidation.

Sam Thomas Kenny was formerly chief executive of Gracechurch, and the FSA said he ‘personally pressurised’ and encouraged staff to pressure clients into investing in ‘risky’ AIM or unlisted companies.

Kenny and his staff misrepresented the small cap stocks’ performance and ignored clients protestations that they had no further cash to invest.

‘Gracechurch’s brokers used pressure sales tactics to coerce its clients to invest in risky small company stocks which were listed on AIM and PLUS or not listed at all,’ the regulator said.

‘The firm misrepresented, for instance, the financial performance of stocks both orally and in writing. Brokers ignored requests for further information and protests that clients had no funds to invest.  In at least one case a broker claimed that the recommendation was based on inside information.’

Alongside the £450,000 fine Kenny has been banned from holding a job in financial services.

He has referred the matter on to the Upper Tribunal.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?

Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:


On the road

Click here to find out more from the Audience Development team.


How this top US fund is playing the shale boom in 7 stocks

on Apr 17, 2014 at 12:26

Sorry, this link is not
quite ready yet