The Financial Services Authority (FSA) has fined former Morrison supermarkets (MRW.L) chairman Ken Morrison for a breach of disclosure rules.

Ken Morrison was fined £210,000 for failing to disclose his reduced shareholding in the FTSE 100-listed company.

Retiring at 28 March 2008, Morrison had a 6.38 per cent holding in the chain worth with an estimated value of £450 million. By 1 March 2011, less than three years later, his holding had shrunk to 0.9 per cent.

However, the FSA reported that no shareholding notifications were made during the period on four occasions when they should have been made.

The City regulator said Morrison had not financially benefited but had not notified the company, which had in turn misled the market over ownership of voting rights.

Tracey McDermott, acting director of enforcement and financial crime at the FSA, said 'It is important that significant shareholders recognise that timely and accurate disclosure of their shareholdings and voting rights is a fundamental component of a properly informed securities market.

'Investors are entitled to know when major and influential shareholders significantly reduce their interest in a listed company. Sir Ken should have been aware of his obligations and his failure to meet them has resulted in this fine.'

She added, 'The rules are designed to enhance transparency and provide investors with timely information regarding voting rights in issuers. Failure to comply with the rules risks damaging investor confidence in the financial markets.'

Morrison was granted a 30 per cent discount on the original £300,000 fine after co-operating with the regulator and agreeing to settle early.

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here