TOWARDS A POLICY ON FINES AND DISCIPLINE: THE DISCIPLINING RECORD OF IMRO AND THE SFA
| DOI | https://doi.org/10.1108/eb024768 |
| Pages | 200-204 |
| Date | 01 February 1992 |
| Published date | 01 February 1992 |
| Author | GARETH ADAMS |
| Subject Matter | Accounting & finance |
TOWARDS
A
POLICY
ON
FINES
AND
DISCIPLINE:
THE
DISCIPLINING RECORD
OF
IMRO
AND THE SFA
Received:
16th
November,
1992.
GARETH ADAMS
GARETH ADAMS
WAS EDUCATED
AT THE
SKINNERS' SCHOOL,
TUNBRIDGE WELLS,
AND ST
EDMUND HALL,
OXFORD.
HE HAS A BA IN
ENGLISH LANGUAGE
AND LITERATURE, AFTER QUALIFYING
AS A
CHARTERED ACCOUNTANT WITH BINDER
HAMLYN,
HE
JOINED BARING BROTHERS,
INITIALLY
IN
INTERNAL AUDIT,
AND
THEREAFTER
IN A
VARIETY
OF
ROLES
CONCENTRATING
ON
SYSTEMS DEVELOPMENT.
IN
1987
HE
JOINED IMRO
AND
DURING
HIS
TIME
THERE
WAS
RESPONSIBLE
FOR A
NUMBER
OF
INVESTIGATIONS.
AND FOR
PROVIDING ADVICE
TO
MEMBERS
ON
COMPLIANCE
IN
APRIL
1990
HE
BECAME COMPLIANCE COORDINATOR
EUROPE
FOR THE
HONGKONG
AND
SHANGHAI
BANKING CORPORATION
LTD
WITH
A
BRIEF
TO
OVERSEE
THE
GROUP'S RESPONSE
TO
COMPLIANCE THROUGHOUT EUROPE.
ABSTRACT
In many
ways
1991
was
a
record
year for
the self-regulatory regime set
up
under the
(FSA).
Not
only
did the
Investment Compensation
Scheme pay
out
a
record sum
to investors,1
but
the
various
self-regulating
organisa-
tions (SROs) levied fines
and
awarded
costs
at
unprecedented
levels.
This paper looks
at the
disciplining
record
of
two
of the four
SROs:
the Invest-
ment Management
Regulatory
Organisa-
tion (IMRO)
and the
Securities
and
Futures
Authority
(SFA).
The Life Assur-
ance
and Unit
Trust Regulatory
Organisa-
tion (LAUTRO) took on
board
the ability
to
levy
fines
in
December
19912 and in
many ways
is
not
a
good
comparison.
The
disciplinary record
of
the
Financial Inter-
mediaries,
Managers
and
Brokers
Regula-
tory Association (FIMBRA) revolves
around
the
suspension
and
release
from
suspension
of
member
firms,
and,
again
provides little scope
for
constructive
comment.
In
the 12
months ended
31st
March,
1992,
IMRO fined
a
total
of 18
mem-
ber firms £446,400. During
the
same
period costs were awarded against
15 member firms
of
£555,228. This
represents
a
total disciplinary reve-
nue
of
£1,001,628.
The
equivalent
figures for
the 12
months ended
31st
March,
1991,
were £14,500, £33,653
and £48,153.3
200
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