DBS halts plans for full listing

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DBS Management, a network for independent financial advisers, yesterday shelved plans to move from the Alternative Investment Market to a full stock-market listing after admitting that it faced a series of allegations from its former compliance director. Shares in DBS dropped sharply from 481p to 422.5p.

The company said it had asked its regulator, the Personal Investment Authority, to investigate the allegations made by Kenneth Stead. But Ken Davy, chairman of DBS and a PIA board member, stressed the allegations did not place investors' funds at risk.

Mr Stead, who headed DBS's compliance team at its Huddersfield head office, has resigned after being ordered to do so by the board.

His departure after seven years with the company followed a series of allegations made by him against the board, DBS said yesterday.

The company refused to give details, but said: "The board of DBS requested that an independent report be commissioned into the issues raised, which has been completed.

"It has been concluded... that the most serious allegation, regarding a compliance issue in 1992, has not been substantiated.

"In relation to other matters raised by Mr Stead, which the board does not believe to be material, certain operational procedures will be reviewed."