* FSA's first such fine based on market capitalisation
* Lamprell says settled early so it could move on (Adds more detail, company reaction)
LONDON, March 18 (Reuters) - Britain's financial watchdoghas fined oil services firm Lamprell Plc 2.4 millionpounds ($3.6 million) for failing to keep the market fullyinformed of its deteriorating financial position last year.
The Financial Services Authority (FSA) said the penalty forLamprell was the first for such rule breaches under a toughernew policy which bases fines on a company's marketcapitalisation, resulting in a much bigger sanction.
The fine would have been 30 percent higher had the UnitedArab Emirates-based company not settled early.
Lamprell's shares in London were down 2.8 percent at 144pence at 0929 GMT, much weaker than the wider market. The FTSEAll Share index was down 0.6 percent.
"Lamprell could not adequately monitor its financialperformance against its budget and against market expectationsand therefore failed in its obligations as a listed company tokeep the market fully informed of its deteriorating financialposition during early 2012," the FSA said on Monday.
The company was also too slow in acting to prevent itsemployees from continuing to deal in its shares once its poorperformance had been recognised by senior management.
"Lamprell's systems and controls may have been adequate atan earlier stage, but failed to keep pace with its growth,"Tracey McDermott, the FSA's director of enforcement andfinancial crime, said.
Lamprell said its board had been determined to strengthenthe company's internal systems and financial reporting.
"The board recognised that it was in the best interests ofthe company to accept the position reached with the FSA, so asto avoid incurring significant additional expenses and expendingthe further time that would be required to pursue the matter,"Lamprell's non-executive chairman John Kennedy said.($1 = 0.6609 British pounds) (Reporting by Sarah Young and Huw Jones; Editing by LorraineTurner and David Holmes)
