25th Mar 2015 10:21
LONDON (Alliance News) - Asia Resource Minerals PLC Wednesday said it is facing a "substantial financial penalty" from UK regulator the Financial Conduct Authority in relation to related-party transactions.
The company said it reported to the FCA in May 2013 three previously undisclosed related party transactions in the period from June 28, 2011 to July 19, 2013, as it believed there had been breaches to certain rules. Asian Resource had said in November 2013 that the FCA was investigating the transactions.
On Wednesday, Asia Resource said the FCA has now presented its investigation summary to the company, which cited "serious breaches" of numerous rules.
As a result, the financial regulator has proposed imposing a "substantial financial penalty" against Asia Resource. The company said it is complying with the investigation to try to come to an agreed outcome, but said it has made a USD7.0 million provision for 2014 as a result.
Asia Resource is currently mulling its response to the proposals made by the Financial Conduct Authority, but declined to comment further to Alliance News as the investigation is still ongoing.
Asia Resource shares were down 3.2% to 12.83 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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