FCA ends probe into car dealership Lookers
The Financial Conduct Authority (FCA) has this morning closed its investigation into car dealer Lookers for the possible miss-selling of products.
The regulator said that it would not impose penalties on the FTSE 250 firm, but said it had made its concerns clear about the “historic culture, systems and controls”.
As a result, Lookers said that it would release the £10.4m it had set aside for any penalty.
Shares in the firm jumped 9.6 per cent this morning as traders hailed the announcement.
Mark Raban, chief executive officer said: “It is an important time for Lookers as we emerge from a difficult period dealing with both the challenges of our legacy issues and Covid.
“We are pleased that the FCA has decided to close its investigation and we can now look forward and continue to build our business for the benefit of our customers and other stakeholders.”
The FCA investigation has been hanging over the firm since it was first launched back in June 2019 after an internal audit identified concerns with its sales process.
A number of senior executives, including boss Andy Bruce, left the firm as a result of the probe.
Last June Lookers said that it would make a £19m adjustment to its results after finding a series of “potentially fraudulent transitions”.
It said that around £4m of the adjustments relate to the initial phase of the investigation which focused on one of the group’s operating divisions.
Shortly afterwards, the firm took the decision to suspend its shares as it was unable to publish its financial results before a deadline.
Lookers’ stock was only relisted at the end of January, after it finally managed to catch up with its accounts.
Shares immediately rose 77 per cent after being readmitted for trading.