Split caps pair banned for a year

TWO City figures involved in the split capital trusts affair have paid the price with one-year bans. But there is growing puzzlement about the uneven punishments handed out by the Financial Services Authority.

David Keen, of Morley Fund Management, agreed not to apply for any management job in the FSA's remit for a year.

The FSA said it had not 'made any findings of regulatory breach' against him. It would not discuss the details. Morley, now owned by insurer Aviva, had five split funds at one time and appears to have put £10m into the FSA's £194m compensation package.

Keen was head of investment trusts but retired in November 2001.

Alan Kerr, formerly of fund manager Legg Mason, also agreed to stay out of management jobs for a year. He now works at Premier Asset Management, though not in what the FSA calls 'a controlled function'.

The sanctions are light compared to the seven-year ban on Aberdeen's Chris Fishwick and the retirement of broker David 'Dotty' Thomas.

The splits probe is likely to go on for months before more public actions. The FSA plans to investigate eight more individuals.

It needs to decide what to do about splits issuers BFS, BC and Exeter which stayed out of the settlement.