FSA fines Morrisons chief £210k for share disclosure failings

The Financial Services Authority (FSA) has fined former Morrisons supermarket chairman Sir Ken Morrison £210,000 for failing to accurately disclose his holdings in the retailer.

Between 2009 and 2010 Sir Ken substantially cut his shareholding in the supermarket chain which reduced his voting rights of 6.38%, a holding worth over £450m, to 0.9%.

Sir Ken, who retired as chairman in 2008, failed to notify Wm Morrison on four separate occasions when his voting rights fell below 6%, 5%, 4% and 3% which he should have done.

The FSA said Sir Ken did not financially benefit from these breaches.

However his failure to notify Wm Morrison of the changes to his shareholding misled the market as to the ownership of voting rights, breaching the FSA's Disclosure and Transparency rules.

Sir Ken's shareholding was also stated incorrectly in Wm Morrison's annual report of 31 January 2010.

Tracey McDermott, acting director of enforcement and financial crime, 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.

"The rules are designed to enhance transparency and provide investors with timely information regarding voting rights in issuers. Failure to comply with the rules risks damaging investor confidence in the financial markets."

Sir Ken co-operated with the FSA and agreed to settle at an early stage and therefore qualified for a 30% reduction in penalty.

Were it not for this discount the FSA would have imposed a financial penalty of £300,000.