Sir Ken fined for 'secret' sale of Morrison shares
Wednesday 17 August 2011
Sir Ken Morrison was fined £210,000 by the City watchdog yesterday for failing on four occasions to disclose share sales worth hundreds of millions of pounds in Wm Morrison, the supermarket chain he once ran.
Sir Ken, 79, failed to tell Morrisons when his voting rights dropped below 6 per cent, 5 per cent, 4 per cent and 3 per cent between 2009 and 2010. The sales made him about £450m.
He told the Financial Services Authority he failed to disclose his share sales because he did not know he was meant to do so.
Investors with more than 3 per cent of a public company are meant to tell the company about share sales or purchases within two days when the deals mean their holding moves through a percentage point, so the company can notify the market the next day.
Sir Ken – who built his family's grocery business into Britain's fourth-biggest supermarket group over 50 years – retired as chairman of Morrisons in March 2008 with a stake of more than 6 per cent. No further disclosures were made until March 2011, by which time Sir Ken's holding had dropped to 0.9 per cent.
The FSA said Sir Ken, who is now Morrisons' honorary president, would have been fined £300,000 but was given a 30 per cent discount for settling early.
The watchdog said he did not benefit financially from his breaches but that the market was misled and his stake was stated incorrectly in Morrisons' 2009 annual report.
Tracey McDermott, acting director of enforcement and financial crime at the FSA, said: "Investors are entitled to know when major and influential shareholders significantly reduce their interest in a listed company. Sir Ken should have been aware of his obligations and his failure to meet them has resulted in this fine."
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should convert and not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...