Ashcroft's BCB breached rules of Stock Exchange

Bank did not reveal to AIM all directorships held by Conservative Party donor's son

New York

BCB Holdings broke London Stock Exchange rules by failing to declare all the directorships held by Andrew Ashcroft, son of the Conservative party donor Lord Ashcroft, The Independent has discovered.

Mr Ashcroft replaced his father on the board of BCB Holdings, the peer's AIM-listed Caribbean banking business, last year and the company was required to disclose all other current and recent board memberships at that time.

Although it declared seven existing directorships and two more where he had sat on the board within the previous five years, public records from the Turks and Caicos Islands (TCI), where Mr Ashcroft is based, show that he had also been a director of another company that BCB Holdings did not reveal.

A document from the TCI's Financial Services Commission shows that Mr Ashcroft was appointed director of Reef Development Company Ltd on 7 September, 2010. His fellow board members were Peter Gaze and Phillip Osborne, two of Lord Ashcroft's long-time business associates and both board members of BCB Holdings.

Eighteen months ago, BCB Holdings was also revealed to have made incomplete disclosures of Mr Osborne's outside business interests, after an investigation by the BBC's Panorama programme.

AIM's rule book requires that when a company appoints new directors, it reveals the names of all companies and partnerships where they have been a director, going back five years. The rules are designed to give investors complete information about board members' outside interests and the ability to police potential conflicts of interest.

Mr Ashcroft joined Belize Bank, a BCB Holdings subsidiary, in 2002 and, after a period at head office in Belize, transferred to the TCI to become the managing director of British Caribbean Bank Ltd, Lord Ashcroft's bank there. He stepped down as a director of BCB Holdings after less than six months because the TCI operations were spun off.

Lord Ashcroft's bank in the TCI financed a decade-long construction boom that turned sour during the financial crisis when tourism collapsed and the country was beset by political scandal. The British Foreign Office suspended the islands' government and imposed direct rule in 2009 after a commission of inquiry found widespread corruption by ministers, including the former Prime Minister Michael Misick.

Lord Ashcroft and his son were not accused of any wrongdoing by the commission. The peer is taking legal action against the previous owner of The Independent over two reports on his business interests in the TCI from November 2009.

It is not clear from the registration document what Reef Development Company Ltd's business was, or was intended to be. It was created in April 2010 with Mr Gaze and Mr Osborne as directors, with Mr Ashcroft joining only later in the year. The Independent has passed the document to the London Stock Exchange for examination. Cenkos Securities, nominated adviser to BCB Holdings, is also investigating. Mr Ashcroft and BCB Holdings did not respond to requests for comment.

The Stock Exchange can impose sanctions, including public censures and fines, on companies found to have broken AIM rules. The severity of the punishment depends on the nature and seriousness of the breach, and on the general compliance history of the company.

BCB Holdings put out what a Stock Exchange spokesman called a "corrective announcement" in 2009 after Panorama discovered two directorships that Mr Osborne should have declared when he joined the company board in 2007, plus a further one which he took on later in the year that was also not disclosed to shareholders.

Start your day with The Independent, sign up for daily news emails
News
people'Interview of the year' no letdown
Sport
Wayne Rooney
sportBut which sporting Brit beats him to top spot in Sunday Times Rich List?
News
Maxine Peake at home in front of a poster for Keeping Rosy
people
Arts and Entertainment
Boys in blue: Peter Firth and (right) Kit Harington in Spooks
filmHow well will Spooks make the leap from the small to the big screen?
ebooks
ebooksA special investigation by Andy McSmith
News
Royal fans covered with Union Jacks and royal memorabilia wait for Kate, Duchess of Cambridge to go into the Lindo wing at St Mary's Hospital to give birth to her second child in London, Friday, April 24, 2015.
peopleLive updates in the wait for Duchess of Cambridge's second child
Sport
Arsène Wenger (left) and Jose Mourinho have to be separated by the fourth official, Jon Moss, during last October’s Premier League match at Stamford Bridge
football
Arts and Entertainment
Tate Modern chief Chris Dercon, who will be leaving to run a Berlin theatre company
arts + ents
Arts and Entertainment
Tasos: 'I rarely refuse an offer to be photographed'
arts + ents
Arts and Entertainment
tv
  • Get to the point
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: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Recruitment Genius: Administrator - IFA Based

£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...

Day In a Page

Major medical journal Lancet under attack for 'extremist hate propaganda' over its coverage of the Israeli-Palestinian conflict

Lancet accused of 'anti-Israel hate propaganda' over coverage of Gaza conflict

Threat to free speech as publishers of renowned medical journal are accused of inciting hatred and violence
General Election 2015: Tories and Lib Dems throw their star names west to grab votes

All noisy on the Lib Dems' western front

The party has deployed its big guns in Cornwall to save its seats there. Simon Usborne heads to the heart of the battle
How Etsy became a crafty little earner: The online market has been floated for £1.2bn, but can craft and capitalism coexist?

How Etsy became a crafty little earner

The online market has been floated for £1.2bn, but can craft and capitalism coexist?
Guy Ritchie is the latest filmmaker to tackle King Arthur - one of our most versatile heroes

King Arthur is inspiring Guy Ritchie

Raluca Radulescu explains why his many permutations - from folk hero to chick-lit hunk - never cease to fascinate
Apple Watch: Will it live up to expectations for the man or woman on the street?

Apple Watch: Will it live up to expectations?

The Apple Watch has apparently sold millions even before its launch tomorrow
Don't fear the artichoke: it's a good cook's staple, with more choice than you'd think

Don't fear the artichoke

Artichokes are scary - they've got spikes and hairy bits, and British cooks tend to give them a wide berth. But they're an essential and delicious part of Italian cuisine
11 best men's socks

11 best men's socks

Make a statement with your accessories, starting from the bottom up
Paul Scholes column: Eden Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo

Paul Scholes column

Hazard would be my Player of the Year – but I wonder if he has that appetite for goals of Messi or Ronaldo
Frank Warren: Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal

Frank Warren's Ringside

Tyson Fury will be closely watching Wladimir Klitschko... when he wins it'll be time to do a deal
London Marathon 2015: Kenya's brothers in arms Wilson Kipsang and Dennis Kimetto ready to take on world

Kenya's brothers in arms take on world

Last year Wilson Kipsang had his marathon record taken off him by training partner and friend Dennis Kimetto. They talk about facing off in the London Marathon
Natalie Bennett interview: I've lost track of the last time I saw my Dad but it's not because I refuse to fly

Natalie Bennett interview: I've lost track of the last time I saw my Dad

Green leader prefers to stay clear of her 'painful' family memories but is more open about 'utterly unreasonable' personal attacks
Syria conflict: Khorasan return with a fresh influx of fighters awaiting the order to start 'shooting the birds'

Khorasan is back in Syria

America said these al-Qaeda militants were bombed out of the country last year - but Kim Sengupta hears a different story
General Election 2015: Is William Cash the man to woo Warwickshire North for Ukip?

On the campaign trail with Ukip

Is William Cash the man to woo Warwickshire North?
Four rival Robin Hood movies get Hollywood go-head - and Friar Tuck will become a superhero

Expect a rush on men's tights

Studios line up four Robin Hoods productions
Peter Kay's Car Share: BBC show is the comedian's first TV sitcom in a decade

In the driving seat: Peter Kay

Car Share is the comedian's first TV sitcom in a decade. The programme's co-creator Paul Coleman reveals the challenges of getting the show on the road