FCA Issues Third Largest Fine To Date For Listing Violations

The Financial Conduct Authority (FCA) has fined Asia Resource Minerals plc (ARM) £4,651,200 for breaches of:

• Listing Principle 2 - for failing to have in place adequate systems and controls to comply with its obligations as a listed company;
• Listing Rule 11.1.10R - for failing to identify related party transactions valued at approximately £8 million;
• Listing Rule  8.2.3R (2) - for failing to obtain guidance from a sponsor to assess the application of the relevant rules; and
• Disclosure and Transparency Rule 4.1.3R - for failing to publish an annual financial report within four months of the financial year-end.

Following an internal review, ARM identified three related party transactions involving its subsidiary, PT Berau Coal Energy TbK. These were transactions with companies in which the directors of the subsidiary also held positions, both on the boards and in senior management. It also became apparent that the subsidiary's balance sheet suffered from