View more on these topics

FCA fines listed company £4.7m

FCA logo new 620x430.jpg

The FCA has fined Asia Resource Minerals £4.7m for breaching the listing rules.

The regulator says the firm had inadequate systems and controls to comply with its obligations as a listed company.

ARM was admitted to the premium section of the official list on 28 June 2011.

On 19 April 2013, the company notified the UK Listing Authority that it would be unable to publish its 2012 financial report within the deadline. This was due to an ongoing review of the integrity of a number of items on the balance sheet of its subsidiary, PT Berau Coal Energy Tbk.

The review included historic potential related party transactions worth £8m which the firm had failed to identify.

On 22 April 2013, the company’s shares were suspended from trading for three months.

The FCA says the firm’s “significant” failings meant investors did not have the appropriate level of protection.

FCA acting director of enforcement and market oversight Georgina Philippou says: “The related party transaction rules protect minority investors in listed companies by ensuring that large shareholders and company directors do not unfairly benefit from their position.

“ARM should have been alive to the need for robust systems and controls to clearly identify related party transactions. ARM fell below the standards we expect; the failings were serious and went on for two years and ultimately led to the suspension of the company’s shares.

“We expect listed companies to comply with the UK Listing Rules from day one of listing and the penalty in this case demonstrates that we will take strong action when companies fail to meet the required standards.”

ARM agreed to settle at an early stage in the investigation and therefore qualified for a 30 per cent discount. Were it not for this discount the FCA would have imposed a fine of £6.6m.

Recommended

George-Osborne-19-March-700.jpg
20

Savers withdraw £1bn using pension freedoms

Savers have withdrawn more than £1bn from their pension pots since the introduction of radical new freedoms in April this year, Chancellor George Osborne says. Osborne says 60,000 people have utilised the new flexibilities in the weeks since they became available. However, the Treasury has not disaggregated the data to provide more granular information such […]

22

Peter Hamilton: The FOS is ignoring the law on complaints

Does the Financial Ombudsman Service fail to take the law into account when making its awards? I have come across awards that arose from income protection contracts in which it seems to have developed its own rules contrary to what the law would be on the issues in question. The relevant facts of one such […]

Aviva-signage-building-2013-700.jpg
4

Aviva launches D2C platform

Aviva has launched a direct-to-consumer platform including an Isa, Sipp and general investment account. Customers will be able to manage their savings, investments and pensions in one place, including buying, selling and switching investments. Annuities can be bought direct but not through the new platform. An Aviva spokeswoman says: “Aviva’s consumer platform is now open […]

Sticking to valuation discipline when investing in China

Journalist Alexis Xydias discusses the opportunities – and potential pitfalls – of investing in China with Artemis fund manager Peter Saacke. With Peter holding significant positions in China in the Artemis funds he manages, journalist Alexis Xydias quizzes Peter on the risks of investing in Chinese stocks – including over-valuations, margin trading and financial reporting issues. Click here for video

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. How is stripping cash from the company in a massive fine going to benefit the shareholders?

  2. it ends up in the compensation pot

  3. Another 30% discount (1.9 million) for shoddy systems and controls ?

    Mind you after reading the report in MM today about record fines, I suppose George Osborne doesn’t mind the FCA giving some “regulatory dividend” to the bad, corrupt and, incompetent !!

    The good can just go …. themselves !!

  4. Let`s face it, the Treasury just now see this as an additional tax stream

Leave a comment