Misys responds to FSA fine on DBS
- Fine relates to a DBS infringement prior to Misys acquisition
- None of the team responsible for the breach is still in place
- Misys welcomes recognition by FSA that substantial investment in compliance procedures has been made since acquisition
DBS Financial Management (‘DBS’) today criticised the “previous DBS management regime” in response to the decision by the Financial Services Authority (‘the FSA’) to impose a fine of £100,000 on the company.
The FSA today fined DBS for regulatory breaches arising from a misleading direct offer advertisement in June 2001, published before the acquisition of DBS by Misys plc. The FSA also criticised DBS for failing, prior to the acquisition, to improve advertising procedures following an earlier regulatory inspection in March 2000.
Steve Pearson, DBS Managing Director, said: “The FSA is fining DBS based on the contravention of regulatory rules by the previous management regime, who have moved on elsewhere. It is very surprising that former management failed to improve procedures adequately after an earlier regulatory inspection in 2000. I am pleased to say that, since the acquisition of DBS by Misys, substantial changes have been made to the management team and wider operating procedures, including the addition of a new Risk Committee & Internal Audit function, which is compliance centric, to ensure appropriate checks and balances are in place to help senior management fulfil their regulatory responsibilities.“
“Misys will continue to act as a flagbearer for higher standards across the life and pensions industry, as research among our IFA customers has clearly shown this is what they expect from us.”
In its final notice, the FSA also noted that:
- Since the misleading advertisement was issued, DBS had been acquired by Misys plc
- Misys has taken action aimed at improving quality standards at DBS
- DBS has invested substantially in improved compliance procedures, particularly with regard to supervision and technology
- None of the individuals in control functions at DBS in June and July 2001 at the time the misleading advertisement was issued remain in these positions
- DBS has proactively reviewed its internal procedures relating to advertising approval
- DBS has increased the human resources available for advertising approval
- DBS has been open and co-operative with the FSA during the investigation. Its approach and its proactivity in identifying investors and arranging for refunds to be made has ensured that consumers have received redress in a timely and effective fashion.
For more information:-
| Paul Charles | ||
| Head of Communications, Misys plc | +44 (0)20 7368 2315 / +44 (0)7769 880991 (m) | |
| paul.charles@misys.co.uk |
About Misys plc
Misys plc, the global software products and solutions company, serves customers in the international banking and securities, US healthcare, and UK retail financial services sectors. The group partners with its customers to deliver outstanding IT solutions to essential industries. For the year ended May 31, 2002, Misys reported revenues in excess of £1 billion. Misys employs more than 6,500 people internationally. For more information, visit www.misys.com
Misys plc, the global software products and solutions company, serves customers in the international banking and securities, US healthcare, and UK retail financial services sectors. The group partners with its customers to deliver outstanding IT solutions to essential industries. For the year ended May 31, 2002, Misys reported revenues in excess of £1 billion. Misys employs more than 6,500 people internationally. For more information, visit www.misys.com
