FSA fines ex-director for failing to monitor and correctly calculate regulatory capital requirements

25 Oct 2012

The FSA has fined Graeham Sampson £17,850 (including a 30 per cent discount) for failing to act with due skill, care and diligence in managing the elements of the business of Montpelier Pension Administration Services (MPAS) for which he was responsible, in breach of Principle 6 of the FSA Statements of Principle for Approved Persons.

Mr Sampson was approved to perform CF1 (Director) at MPAS, a self-invested pension scheme operator and administrator. Between September 2009 and May 2011, Mr Sampson failed to calculate correctly MPAS’ regulatory capital position. As a result, MPAS operated in breach of its regulatory capital requirement for approximately 15 months without its board, parent firm or the FSA being aware of this fact. Mr Sampson did not take reasonable care to understand the relevant FSA capital requirements. He did not adequately monitor MPAS’ liquid capital resources on an ongoing basis and did not ensure that he discounted illiquid assets when reporting the firm’s liquid capital position to the FSA. The result was that Mr Sampson failed to identify that MPAS was operating with a regulatory capital deficit between September 2009 and December 2010. The FSA said that the fine reflects the need to send out a strong message of deterrence to other individuals who exercise significant influence functions at self-invested personal pension scheme operators.

A copy of Mr Sampson’s final notice notice is available.