THE UK’S financial regulator faced a grilling from MPs yesterday over its decision to admit troubled miner ENRC to the London stock market six years ago.
David Lawton, director of markets at the Financial Conduct Authority, told a committee of MPs that he was not aware of a report published by law firm Herbert Smith prior to ENRC’s listing, which outlined financial risks including alleged manipulation of company records. It is thought that the FCA is now looking into whether the report was disclosed to them, with an announcement expected in the next couple of weeks.
ENRC delisted on 25 November, amid allegations of corruption and an ongoing FCA investigation. City A.M. understands that the issues highlighted in the report were addressed prior to the float and that ENRC maintains it was fully compliant with the listing process.