RNS Number : 4456X
13 January 2014
HomeServe announces receipt of the Financial Conduct Authority's (FCA) Draft Warning Notice (the 'Notice') relating to the investigation into historic regulatory issues at HomeServe Membership Limited. These issues principally relate to historic sales and marketing, controls and governance and complaints handling, in line with our previous announcements.
The Notice proposes a financial penalty of £34.5m (assuming an early settlement discount of 30%). This is higher than the company's provision and HomeServe is therefore prudently increasing its provision by £30m.
HomeServe will now engage in discussions with the FCA to finalise the Notice and do not propose making any further comment during these discussions.
The ongoing activities of the UK business are unaffected by this Notice and the business continues to trade in line with expectations.
HomeServe will issue its Interim Management Statement on 5 February 2014.
Richard Harpin, Group Chief Executive
Johnathan Ford, Chief Financial Officer
Tel: 01922 427979
Tel: 0207 353 4200
This information is provided by RNS
The company news service from the London Stock Exchange