Lam­prell fined £2,428,300 for sys­tems fail­ure

The Pak Banker - - COMPANIES/BOSS -

The Fi­nan­cial Ser­vices Author­ity (FSA) has fined Lam­prell plc (Lam­prell) £2,428,300 for sig­nif­i­cant fail­ings in its sys­tems and con­trols re­sult­ing in List­ing Rules and re­lated breaches. Lam­prell could not ad­e­quately mon­i­tor its fi­nan­cial per­for­mance against its bud­get and against mar­ket ex­pec­ta­tions and there­fore failed in its obli­ga­tions as a listed com­pany to keep the mar­ket fully in­formed of its de­te­ri­o­rat­ing fi­nan­cial po­si­tion dur­ing early 2012. The sys­tems and con­trols fail­ings re­sulted in Lam­prell breach­ing the List­ing Prin­ci­ples, the Dis­clo­sure and Trans­parency Rules and also the Model Code on direc­tors' deal­ings in se­cu­ri­ties. From early in 2012, Lam­prell's fi­nan­cial per­for­mance against its bud­get had been de­te­ri­o­rat­ing due to op­er­a­tional is­sues. How­ever, Lam­prell did not up­date the mar­ket on its de­te­ri­o­rat­ing fi­nan­cial per­for­mance un­til it re­leased a trad­ing up­date on 16 May 2012. In re­sponse to this trad­ing up­date, Lam­prell's share price fell by 57% demon­strat­ing the im­por­tance of that fi­nan­cial in­for­ma­tion.

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