24th Jun 2015 08:15
LONDON (Alliance News) - Quindell PLC Wednesday said that UK regulators have begun an investigation into the company under the Financial Services and Markets Act.
In a statement, the insurance outsourcing company said the Financial Conduct Authority informed it of the investigation on Tuesday.
Quindell said it will co-operate "fully" with the investigation, which has been initiated in relation to "public statements made regarding the financial accounts of the company" in 2013 and 2014.
The FCA said it would "liaise with other agencies...as appropriate" as it investigates.
"Given the existence of an investigation, we will not be providing further comment," the FCA said in a statement.
The FCA's investigation adds to the challenges Quindell has faced since Gotham City Research - a short-selling research outfit - called the company a "Country Club Built On Quicksand" in a scathing report published in April 2014. Founder Rob Terry resigned in November that year after scrutiny into his dealings in the company's shares.
On completing the sale of its professional services arm to Slater & Gordon, a law group headquartered in Australia, for GBP637 million on May 29, Quindell said that a review conducted by audit firm PricewaterhouseCoopers raised questions about some of the accounting policies in the businesses that had been sold.
Quindell has said it will adopt "more conservative" accounting policies in future. With the help of its auditors, the company is now reviewing "a number" of its past transactions and acquisitions.
"This work is on-going, but the company expects that it will shortly be in a position to announce additional information in relation to these transactions and acquisitions with a view to ensuring that more complete information is available in respect of the historical position; to ensure that any related party transactions are fully disclosed; and make associated corrections," Quindell said on Wednesday.
Quindell has requested the suspension of its shares from AIM as it awaits the finalisation of the audit of its results for 2014.
By Samuel Agini; [email protected]; @samuelagini
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