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The following item has been taken from the web site of the London Financial Times


"Ross set to escape action by FSA over disclosure
By Andrew Parker and Michael Peel
Published: January 10 2009 02:00 | Last updated: January 10 2009 02:00
David Ross, the former deputy chairman of Carphone Warehouse, looks set to escape action by regulators over a possible breach of stock market rules.

Mr Ross resigned last month from Carphone Warehouse after belatedly disclosing that he had pledged shares in the mobile phone retailer as security against personal loans.

The Financial Services Authority said yesterday that its rules required company directors to disclose promptly any use of their company's shares as security. Yet, in a decision that some lawyers said was embarrassing for the FSA, the regulator said it would not take enforcement action against directors who had not made the disclosures.

The FSA said "uncertainty" about the requirement to make disclosures was the reason for the amnesty, which will last until January 23.

Mr Ross's belated notification of his collateral arrangements to Carphone Warehouse was quickly followed by similar disclosures by directors of other public companies.

Lawyers predicted another rush of disclosures in the run up to January 23.

The FSA, which has been investigating Mr Ross's conduct, declined to comment on him and Carphone Warehouse.

Mr Ross admitted in December to an "apparent but unintentional" breach of stock market rules. Yesterday he said through a spokesman: "We welcome this clarification by the FSA on this area where there has clearly been widespread uncertainty. This has been borne out by . . . David's experience."

The disclosure of collateral arrangements varies across the European Union and the FSA said the lack of common practice had led to uncertainty in London about the exact requirements.

Mr Ross pledged shares in four public companies where he was a director as security against personal loans.

Lombard, Page 14

Copyright The Financial Times Limited 2009


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