Regulations and Law

ShareSoc Highlights Investor Concerns to Select Committee

ShareSoc (the UK Individual Shareholders Society) was asked to give evidence to the Business, Energy, Innovation and Skills (BEIS) Select Committee Inquiry on Corporate Governance. Cliff Weight represented ShareSoc at the inquiry on the 23rd November. You can watch the session in which he appears by clicking on this link (Cliff appears in the second half of the session): http://parliamentlive.tv/Event/Index/053aad45-73c6-43e4-9d36-fd43c3850b60 Here is a summary of some of the points he and other witnesses made: Cliff indicated that individual shareholders are under-represented: The views of ...

Aero Inventory – Deloittes Fined

There was a brief mention of the latest news on Aero Inventory in the recently issued ShareSoc Informer Newsletter, but here are a few more details. False accounts are a common problem in AIM companies (Aero Inventory and Globo are just two examples apart from the recent case of Redcentric). Let us hope the auditors of Redcentric (PWC) take note of the recent record fine imposed on Deloittes of £4 million in relation to their audit of Aero Inventory, plus £2.3 million ...

Pension Protection – It’s Easy

The question of whether to apply to HMRC for “Pension Protection” is something that investors might wish to consider. With the Chancellor’s Autumn Statement coming up on Wednesday (23rd...

Rolls-Royce Accounts Adjustments – Were They Prudent?

Rolls-Royce provided a trading update today, and covered the impact of IFRS 15 which is probably a lot more important. IFRS 15 is a new accounting standard concerning revenue recognition which will come into use in 2018. It will have a major impact on the figures reported by Rolls-Royce because of their past recognition of revenue and profits from long term maintenance contracts. For example, Rolls-Royce report that when looking at the 2015 accounts the "Changes result in adverse notional adjustments to ...

Inquiry into FCA’s Future Mission

The new head of the Financial Conduct Authority, Andrew Bailey, has announced a consultation into the "Future Mission" of the organisation. The FCA does of course regulate financial markets and should be protecting retail investors (or "consumers" as the consultation prefers to call them). However it has been repeatedly criticised in the past for the following failings: - Weak and ineffective regulation. - Not stopping new abuses soon enough. - Failing to look after the interests of retail investors but rather protecting those of ...

When in a Panic, Call Lord Pannick

The name of Lord Pannick has cropped up twice recently. He is one of the leading QCs on public and commercial law. So it was not surprising perhaps that...

Asian Citrus Shares Suspended

Asian Citrus (ACHL) is one of those Chinese AIM companies that you have heard so much about - for example in the BBC Radio Programme reported on in my last blog post. The revenue has been falling and the losses rising at Asian Citrus but any investors still holding the stock are going to have a very bitter taste in their mouth after the latest announcement. Today (29/9/2016) the company announced that it could not issue its Annual Accounts on time and ...

Corporate Governance Inquiry Launched in Parliament

The BIS Select Committee of MPs has launched an inquiry into corporate governance focussing on executive pay, directors duties, and the composition of boardrooms. That includes worker representation and gender balance in executive positions. It has been prompted by the recent comments from the Prime Minister and the Committees recent inquiries into BHS and Sports Direct where major failings were revealed in the way those businesses were run. The terms of reference for this inquiry are very broad - see this web ...

Tesco Fraud Charges, Cattles and Globo

The Serious Fraud Office (SFO) has charged three former managers of Tesco in relation to the overstatement of profits that occurred over several years and which came to light in 2014. The charges are fraud and false accounting and those charged are Carl Rogberg (finance director at the time), Christopher Bush (UK Managing Director) and John Scouler (UK Commercial Director). The former Chief Executive, Philip Clarke, has not been charged but is apparently still under investigation in relation to the offences. Neither ...

Companies House Records May Be Lost

The last ShareSoc Informer Newsletter contained an article on the ease with which one can look up the past history of company directors in the new free service provided...