The FSA has fined Nestor Healthcare Group £175,000 for failing to ensure its board members and senior executives complied with the regulator’s share dealing rules. The regulator says Nestor, which was listed on the London Stock Exchange, had a policy on how staff intending to trade in the company’s shares should obtain clearance to deal, however according to the FSA: “The FSA found breaches occurred principally because Nestor’s “weak procedures” allowed for this policy to be forgotten by the board”
This makes for a great case study in how simple automation of your compliance processes can both improve your governance and save you £175,000. Here are three simple steps as to how our software could have helped prevent this situation from occurring:
- Provide all employees, specifically board members and senior executives, with a simple and auditable submission and approval process that can be accessed from anywhere for their personal share dealings, and any other employee conflicts of interest that should be declared. Find out more about our employee disclosure solution.
- Ensure all of your policies are centrally stored, maintained and accessible by all employees regardless of their location. Find out more about our policy governance solution.
- Schedule recurring attestation requests, that not only remind your employees of the importance of the policy, but that also embeds an easy accessible link to the latest version of the policy, and conveniently displays their existing disclosures for the period in question. Find out more about our employee attestation solution.
Just three simple steps plus an affordable software solution can help negate a £175,000 fine, brand damage and undoubted ancillary costs.