Jardine Fleming 'plugs the gaps' after scandal

Jardine Fleming, the territory's largest and best-known fund management group, yesterday announced a new round of radical restructuring and resignations in the wake of recent regulatory troubles.

Alan Smith, chairman and an employee of the company for 24 years, resigned.

Robert Thomas, the former chief executive who accepted ultimate responsibility for the company's compliance failings, left the board after nearly 30 years with the group.

Alasdair Morrison, managing director of Jardine Matheson Holdings, said: 'Jardine Fleming has responded to the need to build structures and to go forward. Having reviewed his position, Alan has decided to retire.' The reorganisation follows a UK-Hong Kong regulatory investigation which uncovered flaws in the company's compliance procedures and ended in record fines totalling $8.4 million.

Investors were awarded compensation of nearly $150 million.

As part of the punishment, Colin Armstrong, a director and chief investment officer, had his registration as an investment adviser revoked and was forced to pay compensation to investors.