London Evening Standard: FSA bites back over ex-Shell boss (ShellNews.net)

Steve Hawkes,

22 September 2004

THE Financial Services Authority has finally hit back at Sir Philip Watts over his blistering attack on the way the regulator dealt with his case when it slapped a £17m fine on Shell.

The City watchdog claimed it was 'confident' an independent tribunal would find in its favour and reject Watts' claims that it broke its own rules by identifying and prejudicing him in its finding.

Watts last week stunned the City by announcing he was referring the FSA to the same Financial Services and Markets Tribunal currently hearing Legal & General's challenge to a mis-selling fine.

He argued that the FSA 'violated' his statutory rights when it found Shell guilty of stock market abuse over the reserves scandal that brought an end to his reign as chairman of the group.

An FSA spokesman said: 'We are confident that when reference proceeds, the tribunal will conclude we have respected the rights in this case and that [Watts'] were not prejudiced by the issue of our decision notice.'

The FSA's comments come as Watts' successor, Jeroen van der Veer, prepares to unveil his strategy for restoring the oil giant's fortunes in a crucial presentation to the City.

Analysts say he may detail a huge disposal drive designed to raise up to $10bn (£5.56bn) for the group's search for new oil and gas reserves.

The City also wants Shell to step up its share buybacks, $2bn so far this year, to keep investors onside as it restructures. But Jonathan Wright, of Smith Barney, said Shell may instead pay a special dividend of up to 32p.

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