FCA called to act as Quindell is hit by critical blog

 
Oliver Smith
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THE FINANCIAL Conduct Authority (FCA) is facing calls to investigate after a critical blog post wiped £900m from the value of one of the UK’s fastest-growing public firms.

Insurance outsourcer Quindell saw its shares tumble as much as 52 per cent after US firm Gotham City Research initiated coverage with a 3p target price – well below the opening price yesterday of 38.75p.

Quindell called Gotham’s note defamatory and has reported short selling to the FCA.

Peel Hunt’s head of corporate and equity capital markets Andrew Chapman said the watchdog should regulate such statements. “The FCA needs to protect and maintain market integrity and market participants need to have equal availability of information,” he said.

The FCA did not respond for a request to comment.