Semperian, a £1.3bn property fund spun out of Land Securities, has pleaded guilty to an FSA charge of failing to ask for the regulator’s approval when it bought an FSA registered business. The judge at the City of Westminster Magistrates Court yesterday imposed a £1,000 penalty on Semperian PPP Investment Partners, saying the fund had taken a calculated risk the FSA would not prosecute. Semperian notified the FSA in mid December 2008 it proposed to acquire the authorised firm but failed to wait for FSA approval before completing the deal three weeks later. FSA director of enforcement Margaret Cole says:

“This is an example of a controller putting its commercial interests before its regulatory responsibilities and the FSA is taking a much tougher line with those that seek to avoid or ride roughshod over the change in control regime.

“This is a serious offence and the change in law means that future violations could result in an unlimited fine. Today’s result is a clear warning to other potential controllers that the FSA will prosecute change in control offences in appropriate cases.”

It is is the second prosecution the FSA has brought for change in control offences. Mortgage broker Vijay Sharma pleaded guilty in September last year for failing to notify the FSA of his acquisition.

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http://www.ifaonline.co.uk/ifaonline/news/1592515/property-fund-guilty-breaking-fsa-takeover-rules