7th Oct 2014 15:09
LONDON (Alliance News) - Stockbroker and wealth manager Daniel Stewart Securities PLC Tuesday said it has identified a shortfall in its regulatory capital under European rules, and is now in discussions with certain parties in order to strength its balance sheet.
The company's shares have been suspended since October 1, after it was unable publish its annual results for the year to March 31 within six months of the year-end as required.
In a statement Tuesday, the company said that during the final stages of preparation of its accounts, it identified a shortfall in its regulatory capital, under the European Capital Requirements Regulations and Directive CRR/CRD IV.
Regulatory capital relates to the capital required to be maintained by Daniel Stewart as a financial services firm to ensure that sufficient financial resources are available to cover the risk associated with the company's business, as distinct from working capital, which is the capital required to operate the firm.
The company said that as a result, it has not yet been able to publish its accounts.
"The company has had a number of offers of assistance presented to it and is reviewing all available options. The directors are confident that this regulatory issue can be resolved shortly and a further announcement will be made in due course. Until such time as it publishes the accounts, the company's ordinary shares will remain suspended," the company said in a statement.
The stock last traded at 0.365 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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Daniel Stewart Securities Plc