Morgan four barred over Young scandal

FOUR senior Morgan Grenfell directors who left the firm in the wake of the Peter Young fund management scandal have been barred from the City for periods of up to three years and ordered to pay costs of up to pounds 200,000 by the regulator, Imro.

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.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
video
Arts and Entertainment
tv

First full-length look is finally here

Arts and Entertainment
Stanley Tucci as DCI Eugene Morton, Sophie Grabol as Hildur Odegard and Christopher Eccleston as Professor Charlie Stoddart in 'Fortitude'
tvGrace Dent: Still, it's compelling and cinematically sublime
News
news

Rap music mogul accused of running two men over in his truck

Arts and Entertainment
EastEnders actor Danny Dyer has been rejected from Game of Thrones three times
tv
Arts and Entertainment
Frank Turner performing at 93 Feet East
musicReview: 93 Feet East, London
News
Toronto tops the charts across a range of indexes
news

World cities ranked in terms of safety, food security and 'liveability'

ebooks
ebooksA special investigation by Andy McSmith
Voices
A mother and her child
voices
Voices
The veterans Mark Hayward, Hugh Thompson and Sean Staines (back) with Grayson Perry (front left) and Evgeny Lebedev
charity appealMaverick artist Grayson Perry backs our campaign
News
Tax now accounts for ‘nearly 80%’ of the price of a bottle of whisky
news

Arts and Entertainment
Peppa Pig wearing her golden boots
film

"Oink! Oink! Hee hee hee!" First interview with the big-screen star

Life and Style
tech

Biohacking group hopes technology will lead people to think about even more dystopian uses

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee