Lamprell Handed £2.4 Million Fine by FSA (UK)
Lamprell , a provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, confirms that it has concluded a settlement with the Financial Services Authority (“FSA”) in relation to the FSA’s investigation into the Company’s handling of inside information.
As a result, the FSA has found that Lamprell breached Listing Principle 2, DTR 1.3.4R, DTR 2.2.1 and LR 9 Annex 1 (R). The FSA has ruled that there were deficiencies in Lamprell’s systems and controls which meant that it could not adequately assess its financial performance against budget and against market expectations as accurately as it ought to have been able to do. Consequently, Lamprell failed to inform the market of its deteriorating financial position in a timely manner.
In calculating a penalty to be applied for these breaches, the FSA has adopted a methodology using a percentage of market capitalisation as part of the five step framework in the current FSA penalty regime. This methodology sets a precedent going forward for similar breaches by listed companies and is expected to increase significantly the level of financial penalties for these types of breaches (compared to the penalty levels under the previous regime). Based on this, the FSA has imposed a fine of £2,428,300 on Lamprell.
John Kennedy, Non-executive Chairman for Lamprell, commented:
“The Board recognised that it was in the best interests of the Company to accept the position reached with the FSA, so as to avoid incurring significant additional expenses and expending the further time that would be required to pursue the matter. This settlement draws a line under the investigation by the FSA and the matters to which it relates. The Board and management can now exclusively focus their attention on more constructive matters and on upcoming opportunities, with a view to developing and growing the Company further.”