Result of FCA Investigation and Settlement

RNS Number : 6554G

Cenkos Securities PLC

09 August 2016

 

9 August 2016

Cenkos Securities plc

(the "Company")

Result of Financial Conduct Authority Investigation and Settlement

Following the announcement of 27 July 2016, the Company announces that it has received a Final Notice from the Financial Conduct Authority ("FCA") following an investigation into the Company's role as sponsor to Quindell plc ("Quindell") (now known as Watchstone Group plc) in relation to Quindell's planned move from AIM to the premium segment of main market of the LSE in June 2014 and into the Company's systems and controls in relation to its sponsor services.

The Company fully co-operated with the investigation and has entered into a full and final settlement with the FCA, which includes a financial penalty of £530,500.  The Final Notice makes two findings of breaches of the Listing Rules (LR 8.3.1A R and LR 8.3.3 R) in relation to the sponsor services provided to Quindell, as well as one finding of a past breach of a Listing Rule (LR 8.6.6 R) in relation to the Company's systems and controls relating to its sponsor services. 

Notwithstanding this, the Final Notice acknowledges that two particular business areas providing sponsor services within the Company, Investment Funds and Equity Capital Markets, had practices which were more appropriate to meet the risks which those areas' sponsor services mandates posed.

Since 2014, the Company developed and implemented an extensive remediation programme to enhance and improve its systems and controls in relation to its sponsor services, including steps taken in consultation with the UKLA.  The enhancements and improvements include the appointment of a Head and Deputy Head of Sponsor Services, establishing an additional, proactive committee dedicated to supervision throughout the course of a deal and adopting new and enhanced policies and, procedures reflecting current best practice. The FCA has acknowledged the extensive remediation programme which the Company has undertaken in order to enhance and improve its systems and controls in relation to its sponsor services.

The FCA's investigation of the Company is concluded and the full text of the FCA's Final Notice is available from the FCA's website at: www.fca.org.uk/your-fca/documents/final-notices/2016/cenkos-securities-plc

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This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Jim Durkin                                                                          [phone]

Chief Executive Officer       

Cenkos Securities plc

Dr Azhic Basirov / David Jones / Ben Jeynes                         [phone]

Nominated Adviser

Smith & Williamson Corporate Finance Limited

David Rydell / Duncan Mayall / James Newman                      [phone]

Bell Pottinger      

ENDS

 

END

 

 

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