Cenkos Securities, a prominent London stockbroker, is facing fines from the Financial Conduct Authority (FCA) due to its stewardship of the troubled insurance claims outsourcer
Quindell.
Sky News is reporting that Cenkos could be hit with a fine of £700,000 due to failings while working with Quindell, now known as Watchstone Group. Reports suggest people familiar with the investigation said the fine is concerning supervision of Quindell while it was moving its listing from London’s AIM market to the main bourse.
Quindell rebranded as Watchstone Group in November 2015 after making a huge pay out to shareholders when it was revealed ‘aggressive’ accounting practices led to an inflated share price. The company also sold its legal division and appointed a new CEO as part of the rebranding. An investigation by the Serious Fraud Office has been ongoing since last August.
Cenkos, one of London’s most successful stockbroking firms over the last 10 years, is reportedly in negotiations with the FCA over the penalty. Companies can be entitled for a discount of fines for settling cases early. It is possible the penalty may not be made public for weeks.
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