RIG maker Lamprell has been fined £2.4m for listing failings, the City watchdog said this morning.
The Middle East-focused company could not “adequately monitor its financial performance against its budget and against market expectations”, and therefore failed in its obligation to keep the market fully informed of its deteriorating financial position last year, the Financial Services Authority (FSA) said today.
These failings meant Lamprell was unable to update the market with crucial financial information in a timely fashon.
The FSA said the penalty is the first of its kind under the new policy, and is linked to Lamprell’s market cap.
“The integrity of our markets depends on listed companies making timely and accurate disclosures of material developments on an on-going basis. Lamprell’s systems and controls may have been adequate at an earlier stage, but failed to keep pace with its growth,” Tracey McDermott, director of enforcement and financial crime at the FSA, said this morning.
“As a result they were seriously deficient for a listed company of its size and complexity, meaning it was unable to update the market on crucial financial information in a timely manner.”