Financial Conduct Authority (FCA), Barclays (BARC), Close Brothers (CBG), Petrofac (PFC), AstraZeneca (AZN) and Premier Miton (PMI)
The Financial Conduct Authority (FCA) has issued a warning that firms with exposure to possible car finance commission claims must hold adequate funds to meet any potential fines.
The move comes after a progress report said that some firms were struggling to supply the regulator with relevant data on commissions. In some cases, this is because the information is held between agents and lenders, stored on outdated systems, or simply that no record of commissions exists.
The process, launched in January, is also complicated by the fact Barclays (BARC) has sought a judicial review into the decision by the Financial Ombudsman Service to uphold a complaint related to commissions. Specialist finance firms, notably Close Brothers (CBG), down 39 per cent since the start of the year, have seen sharp share price declines since the review was announced.
The FCA will outline its next steps on 24 September and has the option of extending the review and complaint pause currently in place. JH
Petrofac shareholders could be wiped out
Energy services and construction giant Petrofac (PFC) is likely to hand lenders much of the company, which is running out of road with its debts. Petrofac said on Friday morning its current discussions with lenders to restructure its debts “would result in a significant proportion of the debt being exchanged for equity in the business”. Asset sales may also be used to help cover its debts, which were almost $600mn as of 30 June last year.
The company is chasing liquidity as it signs new contracts, with the amortisation of existing loans cutting headroom. The shares fell 26 per cent on this latest warning, with the company now down 60 per cent in the past 12 months. AH
Premier Miton weathers outflows
The combination of acquisitions and decent market conditions allowed fund manager Premier Miton (PMI) to ride out another quarter of net outflows. These amounted to £268mn for the second quarter, with total assets under management (AUM) up by 9 per cent to £10.7bn. The acquisition of Tellworth Investments added £560mn in assets to the pile.
“We are now at a point where interest rates are likely to trend lower as we move through 2024 and we believe this will support an improving environment for fund flows and asset values that should particularly benefit Premier Miton,” chief executive Mike O’Shea said. JH
