Reckitt Benckiser is fined £540k for not disclosing dealings
RECKITT Benckiser, the consumer goods group behind Nurofen painkillers and Finish dishwasher tablets, has been fined £539,800 by the City watchdog for not properly disclosing share dealings by two executives.
The Financial Conduct Authority (FCA) slammed Reckitt for having “inadequate systems and controls” in place to monitor share-dealings by its senior executives in its own shares. As a result, this led to “late and incomplete” disclosure to the market. There is no suggestion that the two senior executives concerned traded on inside information, it said.
The regulator has fined the FTSE 100 group £771,190 for breaching key listing and transparency rules between 2005 and 2012. However, Reckitt agreed to settle early, knocking 30 per cent off the fine.
“Clear and timely disclosure of share dealings is an important way of ensuring that markets are fair and are seen to be fair,” Georgina Philippou, the FCA’s acting director of enforcement and market oversight, said.
“The FCA expects all listed companies to learn the lessons from this case and to ensure they have the right controls and training in place.”
Reckitt failed to notify the market of executives’ share dealings by the end of the next business day, and the company’s failures were compounded by inadequate records and training.