Statement re FCA Final Notice

HomeServe plc

Conclusion of the FCA investigation

HomeServe confirms that it has agreed the terms of the Final Notice with the Financial Conduct Authority (FCA) relating to the investigation into historic regulatory issues at its UK business. These issues principally related to sales and marketing, controls and governance and complaints handling procedures that were last in operation over two years ago.

HomeServe has agreed to a fine of £30.6 million in full and final settlement. There will be no need for further provisions in relation to this fine and the associated remediation exercise. All of the customers that may have been affected as a result of historic practices will have been contacted by the end of March 2014. This brings to a close the FCA investigation and related regulatory issues in relation to the UK business.

Richard Harpin, Chief Executive Officer, HomeServe plc, said:

"We acknowledge the FCA's Final Notice which brings its investigation to a conclusion. We sincerely regret that some customers have been affected by these issues. We have transformed the business, rebuilding and strengthening the management team, retraining staff and restructuring systems and controls. We have worked very hard over the last two years to put customers back at the heart of our business and we are committed to offering valuable products with a high quality of service."

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