17th June 2015
The Financial Conduct Authority (FCA) has fined Asia Resource Minerals plc (ARM), formerly Bumi plc, £4.65m for breaking the rules for listed companies.
The watchdog says that ARM had inadequate systems and controls to meet its obligations as a listed company and that it breached various rules applicable to listed companies.
Georgina Philippou, acting director of enforcement and market oversight at the FCA, says: “The UK listing regime provides confidence to investors that listed companies adhere to a range of standards on governance and investor protection. The related party transaction rules protect minority investors in listed companies by ensuring that large shareholders and company directors do not unfairly benefit from their position.
“ARM should have been alive to the need for robust systems and controls to clearly identify related party transactions. ARM fell below the standards we expect; the failings were serious and went on for two years and ultimately led to the suspension of the company’s shares. We expect listed companies to comply with the UK Listing Rules from Day 1 of listing and the penalty in this case demonstrates that we will take strong action when companies fail to meet the required standards.”
ARM agreed to settle at an early stage in the investigation and therefore qualified for a 30% reduction in penalty. Were it not for this discount the FCA would have imposed a financial penalty of £6.64m.