“Market abuse”-UK watchdog to probe profit warnings

Discussion in 'Wall St. News' started by ASusilovic, Jan 5, 2009.

  1. Leading British and multinational companies are being probed by the FSA financial watchdog over possible failures to disclose key data to the UK stock market, in a sweeping crackdown that threatens fines and prosecutions for “market abuse”, reports the FT. Top City lawyers note a surge in inquiries by the FSA about whether businesses - including Rentokil Initial, the support services company, and Rok, the building group - kept investors properly informed ahead of profits warnings that sent shares tumbling, particularly those falling by 10% or more. The growing regulatory focus on disclosure could lead to disputes with companies over what information should have been revealed and when. More than 40 FTSE 250 companies saw their shares fall by 10% or more on profits warnings in the 11 months to November.