By Huw Jones
LONDON (Reuters) - Britain's financial regulator has fined brokerage Execution Noble & Co 231,000 pounds for breaching rules on sponsoring companies seeking to list on the stock exchange.
The Financial Conduct Authority (FCA) said on Tuesday this was the first time it had fined a sponsor using tougher powers it gained in 2013.
Sponsors give advice and guidance to companies on listing, while also giving assurances to the FCA that are designed to protect investors.
The FCA said Execution Noble failed to tell the watchdog's listing authority that 10 employees - or two thirds of its sponsor team - had left between June and November 2013, during which the company continued to market itself as a competent sponsor.
The regulator first heard about one departure in November 2013 in the media, even though several employees had already left months earlier.
"All sponsors should take note of the consequences if they fail to notify us of material information on time," said Georgina Philippou, acting FCA director of enforcement and market oversight.
Michael Ruck, a lawyer at Pinsent Masons, said: "This fine illustrates the FCA's continuing willingness to take enforcement action in areas of regulation it has not done previously."
Execution Noble is part of the investment banking arm of failed Portuguese lender Banco Espirito Santo SA (LS:BES). Chinese brokerage firm Haitong Securities Ltd (SS:600837) is buying the investment arm, subject to regulatory approval.
Banco Espirito Santo's investment arm said it regretted that Execution Noble had not met the required standards.
The company's failure was not deliberate and it did not derive any financial benefit through not informing the FCA's listings authority of the departures, it added.
Execution Noble's authorisation to act as a sponsor was suspended in December 2013.
(Editing by Matt Scuffham and Pravin Char)