By Huw Jones
LONDON, Feb 23 (Reuters) - Britain's financial regulator hasfined W H Ireland 1.2 million pounds ($1.7 million) forinadequate controls to prevent trading abuses, prompting theasset manager and broker to ask shareholders for a similar sum.
The Financial Conduct Authority (FCA) has also banned WHIfrom taking on new customers in its corporate broking divisionuntil May 4. The division is focused on small and mid-capcompanies.
Failures between January and June 2013 covered inadequatepersonal account dealing rules for employees, and insufficientcontrols to ensure that inside information did not leak to thepublic side of its business.
Separately on Tuesday, WHI said it raised 1.07 millionpounds through a placement of new shares in the market and woulduse the funds for "corporate purposes".
At 0930 GMT, shares in WHI were up 2.5 percent at 87 pence,below the 90 pence per share placement price.
"We regret that we fell short of the FCA's expectations butsince the beginning of my tenure in early 2013, significantchanges have been made at the company and new specific oversightfunctions have been created," WHI Chief Executive RichardKillingbeck said in a statement.
The FCA said WHI had around 87 corporate broking clients,and 9,000 private wealth clients with about 2.5 billion poundsof assets under management when the failings occurred.
The problems were identified in August 2013 in a report froman external or "skilled" person appointed by the watchdog. Someof the report's recommendations were not implemented properly,the FCA said.
"In this case, WHI's failings were aggravated by the failureto implement adequately the skilled person's recommendations,"FCA director of enforcement, Mark Steward said in a statement.
"It is one thing to be given a chance, for the chance not tobe taken up is especially culpable," Steward said. ($1 = 0.7076 pounds) (Editing by Keith Weir)