Announcement regarding Winter

RNS Number : 6176K

Close Brothers Group PLC

22 April 2010

 



Close Brothers Group plc

Announcement regarding Winterflood Securities Limited

Close Brothers Group ("Close Brothers") notes that the Court of Appeal has rejected an appeal by Winterflood Securities Limited ("Winterflood") against a decision made by the Financial Services and Markets Tribunal ("the Tribunal") in March 2009.  The Tribunal's decision upheld the decision made by the Financial Services Authority ("the FSA") in June 2008 that Winterflood and two of its traders committed market abuse in 2004.

It was not alleged, and there is no finding, that Winterflood or its traders deliberately or knowingly committed market abuse.  As previously announced, the findings stem from trading by third parties in 2003 and 2004 in shares of Fundamental E Investments plc ("FEI"), an AIM listed stock.  Winterflood was a market-maker in FEI at the time. 

As announced by Close Brothers on 17 July 2008, the FSA's decision was to impose a financial penalty of £4 million on Winterflood. This financial penalty, together with the costs of the referral, has been fully provided for by Winterflood in prior years and there will be no financial impact of this decision to Close Brothers in the current financial year.

Ends

Enquiries:

Erica Sibree                            Close Brothers Group plc      

                                                Investor Relations                               020 7655 3353

Anthony Silverman                  Maitland                                              

Press Enquiries                                  020 7379 5151

 

END

 

 

MSCSEFSUEFSSELL