Marconi three to escape FSA censure

CITY watchdog the Financial Services Authority is close to completing its investigation into telecoms equipment maker Marconi. The FSA is probing the company's alleged failure to keep shareholders informed in the run-up to a profits warning last summer.

But former bosses Lord Simpson, Sir Roger Hurn and John Mayo will escape being 'named and shamed' because of a regulation loophole.

The watchdog was recently given the power to censure and fine former directors of companies which knowingly participated in a breach of Stock Exchange listing rules. But the new powers did not come into effect until November last year, after the Marconi trio quit, and cannot be backdated.

The FSA, which refused to comment, may, however, opt to reprimand Marconi publicly. It may also phrase any censure in pointed language, leaving no doubt over its views on former directors. Marconi said it has now taken steps to improve communication.