Nestor Healthcare Group has been fined £175,000 by the Financial Services Authority (FSA) for failing to ensure its board members and senior executives complied with share dealing rules.
Nestor, which was listed on the London Stock Exchange between October 2006 and June 2010, had a policy on how staff intending to trade in the company’s shares should obtain clearance to deal. The FSA found breaches occurred principally because Nestor’s “weak procedures” allowed for this policy to be forgotten. This led to purchases of Nestor shares by board members being carried out in breach of the ‘model code’, which lays down minimum procedural standards.
It is the first time a penalty has been imposed on a company by the FSA for breaches of the listing rules and listing principles relating to compliance with the model code.
For the text of the Final Notice, see the FSA website.