The Financial Services Authority (FSA) has fined companies in the Prudential Group for £30m for breaching FSA Principles and UKLA Listing Principles. Prudential failed to inform the FSA at the appropriate time that it was seeking to acquire AIA, the Asian subsidiary of AIG, in early 2010.
Prudential and the Prudential Assurance Company were fined £14m and £16m respectively for failing to deal with the FSA in an open and co-operative manner.
Tracey McDermott, FSA director of enforcement and financial crime, said:
Prudential, led by Thiam as CEO, failed to give due consideration to its obligation to inform the FSA of this transaction, which would have had a huge impact on the group had it gone through. That was a serious error of judgement for which Prudential is paying the price.
Thiam has also been censured in relation to his role in this matter. This case should send a clear message to all board members of their collective and individual responsibility for the decisions they make on behalf of their companies.