Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK fund manager River and Mercantile slashes provision for FCA probe

Published 06/07/2018, 07:59
Updated 06/07/2018, 08:00
© Reuters. A maintenance worker cleans the entrance area of the headquarters of the new Financial Conduct Authority in the Canary Wharf business district of London

© Reuters. A maintenance worker cleans the entrance area of the headquarters of the new Financial Conduct Authority in the Canary Wharf business district of London

LONDON (Reuters) - British fund manager River and Mercantile Asset Management (L:RIV) cut its provision for an investigation by Britain's markets watchdog to 109,000 pounds from a previous one million, it said on Friday.

R&M was one of four asset management firms which may have broken competition law during share sales, the FCA said last year in its first case using its anti-trust enforcement powers.

R&M cut the provision to reflect guidance from the Financial Conduct Authority on the likely size of any penalty, if one were imposed, the company said in a statement.

"The group continues to co-operate fully with the FCA in this complex matter and we will provide further updates when the FCA reaches its final decision in due course," R&M chief executive Mike Faulkner said.

The FCA alleged the four firms - Artemis Investment Management, Hargreave Hale, Newton Investment Management and R&M, shared information about how much they planned to pay for stock deals shortly before prices were officially set.

The main allegations centre on one or more of two listings and a share placing in 2014 and 2015.

© Reuters. A maintenance worker cleans the entrance area of the headquarters of the new Financial Conduct Authority in the Canary Wharf business district of London

R&M, which said in March it was setting aside a one million pound provision, also reported a 2 percent rise in assets under management in the two months to May 31, to 33.8 billion pounds.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.