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LMN reaction to announcement of new FCA measures on London listed companies
Wednesday 6th November – For Immediate Release
On Tuesday the FCA announced new measures to better protect minority shareholders, of London-listed companies after high-profile scandals at mining companies ENRC and Bumi.
Richard Solly from the London Mining Network said:
"The announcement by the Financial Conduct Authority (FCA) of new rules to strengthen minority shareholders' powers to hold companies to account, although well intentioned, will not change the power dynamic within mining companies which enables them to ride roughshod over governance issues and therefore the lives of those directly affected by the destruction that these companies' operations bring.”
“One year on from the publication of the last consultation paper on the rules for listing on the London Stock Exchange and nearly a year on from the establishment of the new FCA, mining companies such as Bumi plc and ENRC continue to wreak havoc both in the financial markets of London and on the ground with their mining operations."
Andrew Hickman from LMN-member group Down to Earth said:
"Bumi's creation in 2010 is now acknowledged to be illegitimate, lacking due diligence by the company, its founding shareholders, its lawyers, financiers and regulators. Since then, corruption, mismanagement and social and environmental destruction have been revealed to be rife in the companies' operations. When will the UK's financial regulator not just tinker at the edges, but get a grip on this situation and act to stop this abuse?"
Yesterday, on the announcement of these new listing rules, David Lawton, the FCA's director of markets, maintained that "active engagement by shareholders is essential to make markets work well."
London Mining Network (LMN) and its member groups have raised issues at Bumi plc's shareholder meetings. But the company continues to operate with impunity on the London Stock Exchange (LSE), despite allegations of massive fraud, court cases, investigations by the Serious Fraud Office and share suspension.
For more information or comment, contact Richard Solly, email@example.com / 07903 851695
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See the LMN report UK-Listed Mining Companies & the Case for Stricter Oversight.