Pru granted inquiry delay
Tuesday 07 March 1995
It is understood that the company asked the Quotations Committee, which is hearing the appeal, for more time to prepare its case. The Pru lost an earlier appeal after the exchange's listings department found Mr Newmarch, the company's former chief executive, and Sir Brian Corby, its chairman, guilty of breaching the model code on directors' dealings.
The committee, composed of senior executives from quoted companies and market practitioners, is the last court of appeal at the exchange. It is to consider whether Mr Newmarch breached the code by dealing in Pru shares on the morning of 25 October, just hours before a report on pensions misselling was published by the Securities and Investments Board.
Mr Newmarch made a profit of £200,000 plus, by exercising and selling 208,000 share options. The company said Mr Newmarch had to exercise by that day to allow him to receive options due the following day. But critics maintain he should have exercised the options, but held the shares for a few days until the effects on the Pru's share price from the SIB report were clear. Mr Newmarch resigned at the end of January, citing frustration at the regulatory regime in financial services. But in a statement announcing his departure, the company also revealed the existence of the inquiry into his share dealing.
Sir Brian faces censure for authorising the transaction. The affair hinges on whether the SIB report was price-sensitive information. It was very critical of the insurance industry for advising customers to opt out of company pension schemes. It is likely to lead to large compensation bills that will have to be met by insurance companies such as the Pru.
The company maintains that Mr Newmarch and Sir Brian did nothing wrong as the report's contents were widely known. Although the Pru's share price did fall slightly on the day the report was published, it did rise steadily in the following weeks.
In a further twist, Treasury officials gave evidence to the Stock Exchange that Mr Newmarch told Kenneth Clarke, the Chancellor, that the report would hit the Pru's share price at a meeting a week before publication. Mr Newmarch denies he made such a remark.
- 1 Cecil the lion: Dentist Walter Palmer blames local guides in Zimbabwe for the scandal
- 2 Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
- 3 Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
- 4 Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
- 5 Walter Palmer: Cecil the lion killer revealed to be American dentist
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
Model's video shoot on the beach interrupted by sudden landing of a group of illegal migrants
Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
Walter Palmer: Cecil the lion killer revealed to be American dentist
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
The last thing Labour needs is a leader like Jeremy Corbyn who people want to vote for
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
iJobs Money & Business
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...
£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...
£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...
£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...