The Financial Services Authority (FSA) has fined a finance director £30,000 for failing to exercise due care in his accounting practices.
In the first case of the FSA imposing a fine on a senior executive for such an offence, David Whistance, formerly finance director at W Deb MVL Plc, was told that he had failed to take "reasonable steps" to ensure that his firm had complied with required accounting procedures.
Because of Mr Whistance's failings, the firm was unable to monitor its own financial position and to comply with its reporting requirements. This resulted in his firm making total provisions of £66.3 million in its accounts for 2004 and 2005 against assets viewed as irrecoverable.
This then led to the former parent company ING waiving loans worth £58 million in order to make sure it was adequately capitalised.
Senior management held responsible
"The FSA holds senior management of regulated firms responsible for ensuring their firms are organised competently in order to meet their regulatory obligations," said FSA director of enforcement Margaret Cole.
"Failure by senior management to properly perform their roles poses a risk to the firm's financial health, the interests of their clients and ultimately to the UK's financial system."
ING was fined more than £500,000 earlier this year by the FSA following an investigation into the matter.
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