It has become a cliche of our reporting on Interserve (IRV) to mention the steady stream of bad news the company has been releasing as it struggles to get back on its feet. The outsourcer’s most recent announcement came last week with news the Financial Conduct Authority is investigating it for handling of inside information and disclosures to the market about its now-exited energy from waste business.
The FCA does not comment on ongoing cases and Interserve’s statement is brief, making it difficult to assess the extent of the investigation and the possible consequences. Should the FCA find fault, Mike Rainford, partner at law firm JMW Solicitor said, the question would be whether it was the result of a breach of regulation – in which case the company would likely face a financial penalty – or conscious fraud by a director – in which case the individuals involved could face criminal action.
