Former Fortis financial services group CEOs were slapped with fines by the regulatory authorities of Belgium last Wednesday. The fines were due to their failure to inform the markets properly of mandatory information prior to the run-up of the collapse of the company last 2008.

The two officers, namely Jean-Paul Votron, former CEO from October 2004 to July 2008 and Herman Verwilst, deputy CEO who became CEO after Votron left the firm were individually fined for their ommissions. Votron confirmed the imposition but did not provide any details while Verwilst was fined Eur200,000 or US$334,800.

The two individusls have challenged the findings and conclusions of the Belgian regulator and are now preparing their appeal for the penalties imposed.

Also included in the ruling is Ageas, the insurance firm that retained the bank's assets after the breakup of the firm. The fine totalled Eur500,000 but are now planning to appeal the said penalty.

According to testimony from shareholder groups, Fortis had assured investors several times that the balance sheet was strong and no change in the dividend policy would be conducted. By the end of June 2008, Fortis had decided to scrap the dividend policy and instead sold new shares in order to shore up its financial position.

The regulator found that Fortis was in delay in communicating or incorrectly asserted between May and June 2008 the proper remedies available for shareholders on its future solvency. This is required by the European Commission.