'Gagged' Imro chief free to talk to MPs

NIC CICUTTI

The chief executive of the investment managers' watchdog, Imro, appeared yesterday to have won his battle to give evidence to MPs on the state of financial services regulation.

An emergency meeting of the board of Imro, the Investment Management Regulatory Organization, agreed to allow Phillip Thorpe and the watchdog's chairman, Charles Nunneley, to attend a further meeting of the Treasury Select Committee, if summoned. The board's meeting follows a decision by the select committee to launch an inquiry into whether Mr Thorpe was gagged by Mr Nunneley when he appeared before its members last week.

Sir Thomas Arnold MP, chairman of the committee, has written a personal letter to Mr Thorpe asking him to comment on allegations that he felt his job would be under threat if he answered its questions fully. He also wants Mr Thorpe to expand on the Imro submission to the committee, first revealed in the Independent, in which the regulatory effectiveness of the Securities and Investments Board, the City's senior watchdog, was called into question.

An Imro spokeswoman said yesterday Mr Thorpe would be replying to Sir Thomas, indicating his willingness to attend with Mr Nunneley, and would be "answering questions without any reservations".

Board members yesterdaybacked their original criticism of the SIB and said they were giving their full support to both men but refused to elaborate.

One board member, who refused to be named, said: "Some of us felt it was regrettable this whole thing should have come out the way it did. But we have the highest respect for Phillip and what he has done for Imro after the Maxwell scandal. We would not want to lose him."

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