Keith Percy, former chief executive of Morgan Grenfell Asset Management, today agreed to a reprimand from the U.K.'s Investment Management Regulatory Organization for failing to take adequate oversight in a 1996 investment scandal.
The reprimand requires Mr. Percy to reimburse IMRO for at least L84,220 ($139,384) in costs and lifts the cloud that was hanging over Mr. Percy's head because he no longer faces suspension or banishment from the investment industry.
IMRO said Mr. Percy should have taken additional steps to investigate investments made by MGAM's former portfolio manager Peter Young. Mr. Young, who recently turned up in a pink dress at a court appearance, had invested 33% of a European growth fund in unlisted securities. The scandal resulted in Mr. Percy's August 1996 departure. Parent Deutsche Bank purchased the unlisted securities for about L180 million, and compensated 180,000 investors for more than L210 million.
