Newmarch told Clarke SIB report would hit shares, official claims


Mick Newmarch, former chief executive of Prudential, told the Chancellor of the Exchequer, Kenneth Clarke, that the Securities and Investments Board report on pension transfers would hit the company's share price, according to a senior Treasury official.

The official was one of two Treasury civil servants giving evidence yesterday to the Stock Exchange as part of the investigation into share dealings by Mr Newmarch on 25 October, the day the SIB report was published.

The exchange has already indicated it intends to censure Mr Newmarch and the Pru's chairman, Sir Brian Corby, over the affair on the grounds that it was a breach of the code governing directors' share dealings.

Mr Newmarch made a profit of more than £200,000 by exercising and selling more than 200,000 share options in the company hours before the SIB report was published.

The Prudential argues that the report was not price-sensitive.

But the Treasury alerted the Stock Exchange to Mr Newmarch's remarks, which took place during a meeting in early October between him and the Chancellor to discuss the SIB report.

The meeting, held at Mr Newmarch's request, included David Prosser, chief executive of Legal and General. He is understood to have written to the Stock Exchange confirming Mr Newmarch's version of events. But the remark on price sensitivity apparently occurred after the formal part of the meeting had ended.

It is understood that a Treasury official took a note of the remark. The Treasury official also told the Stock Exchange that Mr Newmarch had made it clear he had seen a draft copy of the SIB report.

The Pru disputes the Treasury version of the meeting, which was requested by the company to discuss the pension transfer scandal. Mr Newmarch gave his evidence to the committee last week.

It was Mr Newmarch's share deal that caused the Treasury to spark a Stock Exchange investigation, which in turn partly led to his abrupt decision to resign.

The Stock Exchange recently advised the company that it intended to issue a reprimand because it considered the deal to be in breach of its model code for directors.

Yesterday's hearing was part of an appeal by the Pru against that decision.

If the appeal confirms the censure, the Pru can demand a further appeal. It argues that the contents of the SIB report were widely known and did not consitute price-sensitive information.

Mr Newmarch's share transaction was authorised by Sir Brian, who has taken over as acting chief executive following Mr Newmarch's departure.

Jacqueline Bisset has claimed that young women today are obsessed with being 'hot', rather than 'charming', 'romantic' or 'beautiful'
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Arts and Entertainment
A bit rich: Maggie Smith in Downton Abbey
tvSeries 5 opening episode attracts lowest ratings since drama began
Arts and Entertainment
Ben Affleck stars as prime suspect Nick Dunne in the film adaptation of Gone Girl
filmBen Affleck and Rosamund Pike excel in David Fincher's film, says Geoffrey Macnab
Arts and Entertainment
Lena Dunham
booksLena Dunham's memoirs - written at the age of 28 - are honest to the point of making you squirm
Life and Style
fashionThe supermodel on her career, motherhood and Cara Delevingne
Life and Style
A new app has been launched that enables people to have a cuddle from a stranger
techNew app offers 'PG alternative' to dating services like Tinder
ebooksAn unforgettable anthology of contemporary reportage
Greg Dyke insists he will not resign as Football Association chairman after receiving a watch worth more than £16,000 but has called for an end to the culture of gifts being given to football officials
Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
premier league
Frank Lampard and his non-celebration
premier leagueManchester City vs Chelsea match report from the Etihad Stadium
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

COO / Chief Operating Officer

£80 - 100k + Bonus: Guru Careers: A COO / Chief Operating Officer is needed to...

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments