Lord Hodgson, who resigned from Tenet earlier this year, told fellow peers last night, during a debate on the Financial Services Bill, about how Graeham Sampson, who joined the firm in April 2011, had been left in limbo by the regulator.
Sampson was told he could not take up the position of finance director, although attempts by Lord Hodgson to find out why proved to be futile.
“[The FSA] said it could not tell me as there was an investigation and it was confidential. I asked the FSA if it could tell him what he had done.
“It said it could not do that either as it was confidential. That was June or July 2011. He is still waiting to hear the outcome a year later.
“He cannot find out what he has been accused of and is in a Kafkaesque situation.”
Before joining Tenet, Sampson had CF1 Director controlled functions at Montpelier Pension Administration Services Limited, Montpelier Financial Services (Manchester) Limited and Montpelier Group (Europe) Limited.
Montpelier Group is among the companies currently being pursued by the Financial Services Compensation Scheme for recovery of pay-outs related to Keydata claims.
It is now in administration and was de-authorised by the FSA in April, with documents lodged with Companies House suggesting it could be subject to up to almost £250,000 in claims related to Arch Cru.
An FSA spokesperson was unable to comment on details about any investigations into Sampson’s former employers.
“I can see how the regulator could argue that, if you have a person who has been involved in a firm which is under investigation, preventing him operating might be proportionate but to hold him in limbo for 13 months cannot be reasonable or fair,” said Hodgson.
“It offends the principles of natural justice.”
Tenet confirmed Sampson has now taken up the role of commercial director at the firm.
