Former FAI executives Daniel Wilkie and Tim Mainprize will appear in a Sydney court next Tuesday charged with providing false and misleading information and using their positions to the detriment of the company.

The charges were laid yesterday by the Australian Securities and Investments Commission, and relate to offences that allegedly occurred in 1998. Mr Wilkie was COO at FAI and Mr Mainprize was the Finance Director.

The dates stated in the charges – May 1 and June 26 1998 – are the dates on which Mr Wilkie and Mr Mainprize signed “side letters” for a reinsurance contract with General Cologne Re. The HIH Royal Commission was told that the letters effectively relieved all risk from General Cologne Re, but still enabled FAI to post an additional $27 million as profit for 1998.

Although both men gave evidence at the HIH Royal Commission and were recommended in the final report for further investigation, they were not specifically criticised in the final report over the “side letters” issue.