Stockbroker penalised pounds 135,000 by SFA
Friday 01 September 1995
Allied Provincial Securities, the stockbroker, was ordered to pay pounds 135,000 in fines and costs yesterday after one of its senior staff diverted more than pounds 1m of a client's money into a firm where he was a director.
David Duncan was ordered by the Securities and Futures Authority to pay a personal fine of pounds 15,000, plus pounds 5,000 costs. He has also been barred for life from working as a stockbroker.
The fine on Allied Provincial, recently taken over by King & Shaxson, the financial services company, is one of the largest levied by the SFA, the stockbrokers' watchdog.
Bernard Solomons, deputy chairman of Greig Middleton, under whose name Allied Provincial now trades, said he had known Duncan for 30 years and could not believe what had happened. "We never had any complaints about David and would not have expected this of him. This is distressing and very bewildering," he said.
Duncan was responsible for managing a private client's portfolio from the firm's Glasgow office. He arranged for payments of more than pounds 1m to be made from her account to Fern Developments, a small biotechnical equipment company.
Although Duncan did tell his client about the investment, she was not aware of the risk involved or of the nature of the payment. Nor did he tell her that his wife was also an employee at Fern Developments.
The money, paid over a period of more than two years, was unsecured. Throughout this period the firm was in financial difficulty and was only kept afloat by the loans made to it. It eventually went into receivership in November 1993.
The SFA said Duncan had originally faced a fine of pounds 50,000 but this was reduced given his means. He is now believed to be out of work.
Its fine on Allied Provincial related to its failure to supervise Duncan's activities more tightly and to spot problems.
Mr Solomons said: "We accept that we could have operated better in terms of our compliance activities and we have tightened up in this area."
The client, for whom the "investment" in Fern composed 10 per cent of her portfolio, is now in talks with Allied Provincial's insurers, with a view to a total refund for her losses.
The SFA's fine on Allied Provincial follows a record one of pounds 200,000 in April on Greig Middleton itself, the King & Shaxson firm it is now a part of.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 4 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 5 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...