Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

FCA fines AIM firm £70k in first use of new powers

FCA fines AIM firm £70k in first use of new powers

The Financial Conduct Authority (FCA) has flexed powers granted to it by last year’s Markets Abuse Regulation (MAR) for the first time, issuing a £70,000 fine to an investment company for late disclosure.

Tejoori (TJlu) was listed on the Alternative Investment Marekt (AIM) from 2006 until its formal wind-up last week and at the time of the failure held just two investments. One of these, German biogas business Bekon AG, was held at a reported value of $3.5 million (£2.6 million) when it was purchased last year.

The managers of Tejoori failed to disclose that they had handed over the stake for ‘no initial consideration’ and only the future prospect of payment ‘materially below’ its earlier book value to a third party.

‘Without knowing these details, the market speculated, in online bulletin boards, about the amount that may have been paid to Tejoori,’ said the FCA

‘The bulletin board discussions regarded the sale as a positive development for Tejoori and Tejoori’s share price rose sharply on 22 and 23 August 2016, increasing 38% over the two days.’   

FCA executive director of enforcement and market oversight Mark Steward said: ‘This was a serious breach. Issuers must have regard to their disclosure obligations at all times and misunderstanding the commercial reality of a transaction is no excuse.’

Tejoori notified the FCA of the failure after the London Stock Exchange intervened to query its sudden share price rise. The company was found to be in breach of MAR by not releasing an annoucement about its holding in shareholding in Bekon as soon as possible.

However it cooperated fully with investigators and was therefore granted a discount to the maximum financial penalty of £100,000.  

A spokesperson for the London Stock Exchange the company 'welcomes' news of the fine.

'London Stock Exchange works closely with the FCA to co-ordinate our approach in relation to our respective areas of remit in order to minimize duplication and also to ensure the effective overall operation of the market,' it added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter