Morgan four barred over Young scandal
Thursday 21 May 1998
Mr Young was fired in September 1996, following the discovery of "serious rregularities" in three of his funds.
The four former directors have had their Imro registrations suspended for periods ranging from 16 months to three years and have been ordered to pay Imro's costs.
Elements of the investigation process have caused unease in some areas of the City. In particular, there has been concern that high legal costs could have deterred the four from taking their cases to an independent tribunal.
Graham Kane, formerly managing director of Morgan Grenfell Unit Trust Managers (MGUTM), has had his Imro registration suspended for 16 months, and will pay Imro's investigation costs of pounds 90,740 as well "as a contribution to its disciplinary costs".
Paul Ebling, formerly a compliance officer at Morgan Grenfell, has had his registration suspended for two years and has undertaken not to apply for a senior compliance position for a further 12 months. He will pay Imro's investigation costs of pounds 69,450 and a contribution towards its disciplinary costs.
Glyn Owen, formerly chief executive of Morgan Grenfell International Fund Management (MGIFM), has had his registration suspended for three years, and will pay Imro investigation costs of pounds 88,770. He too will pay a contribution to Imro's disciplinary costs.
The most severe penalty was reserved for Michael Wheatley, formerly a Morgan Grenfell compliance director. He has had his Imro registration suspended for three years, has been permanently restricted from holding a compliance position, has been ordered to pay Imro's investigation costs of pounds 90,850 and a contribution to its disciplinary costs. Mr Wheatley has left the City to pursue a career in academia.
The suspensions are back-dated to 4 December 1997, when Imro's enforcement committee first met to discuss penalties.
Keith Percy, formerly chief executive of Morgan Grenfell Asset Management, is understood to be in settlement negotiations with Imro. Mr Percy, who has substantial personal wealth, is believed to be considering taking his case to an independent tribunal.
Concerns over legal costs are believed to have deterred the four other directors from taking the tribunal route. According to some City estimates, an individual who decides to take their case to tribunal could incur costs of more than pounds 250,000. And if the individual loses, he or she then becomes liable for Imro's costs, which could exceed pounds 500,000.
While most in the City agree with the principle of the accountability of senior management, concern has been expressed in some quarters over the manner in which Imro conducted its investigations.
Philip Warland, director general of the Association of Unit Trusts and Investment Funds, is just one leading City figure with doubts about the disciplinary process.
Mr Warland, one of the few in the City prepared to air his views publicly, said: "I have no difficulty with the situation that when companies take the public's money, they should be held accountable. Similarly, senior management should be held accountable."
However, Mr Warland said he was concerned about the time and the costs of the process. He was particularly worried that individuals were being "effectively denied access to tribunal". "At the tribunal, the prosecutors' costs are borne by the accused if they lose. . . That doesn't happen if you're a murderer."
Mr Warland added he would be campaigning to ensure Imro's enforcement procedures would not be adopted when procedures were harmonised across the FSA, the new industry-wide regulator.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name in favour of its Lumia brand
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Couple die within 28 hours of each other after being married for 73 years
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali 2014: What is the festival of lights and how is it celebrated?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...