FSA imposes highest fine ever on Dutchman

16th August 2011, Comments 0 comments

The decision by UK regulator Financial Services Authority FSA to fine Dutchman Michiel Weiger Visser, chief executive of a hedge fund company, two million pounds 2.3 million euros on grounds of deceiving investors has been upheld by an independent tribunal.

Mr Visser, who was the CEO of Mercurius Capital Management, has also been banned from performing any role in regulated financial services.

Mercurius managed the hedge fund Mercurius International Fund which attracted about 20 investors between July 2006 and January 2008. It has some 35 million pounds under its management

Concealed company’s dangerous position On 11 January 2008, the fund collapsed and was placed in voluntary liquidation. Investors have so far been unable to reclaim any of their investment back.

The FSA found Mr Visser's investment decisions, which were in breach of the restrictions he was supposed to operate under, placed the fund in a vulnerable position.

It said Mr Visser and the company’s chief financial officer, Oluwole Modupe Fagbulu, had deliberately concealed this financial information from investors for over a year and enabled the fund to raise €8m of new capital in the three months prior to its collapse.

Mr Fagbulu was ordered to pay a fine of 100,000 pounds 113,425 euros.

Mr Visser’s two-million-pound fine is the highest ever imposed by the FSA.

© Radio Netherlands Worldwide

© Radio Netherlands Worldwide

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