Quindell scrutinised by Lord Myners

Troubled insurance outsourcer Quindell has drawn the scrutiny of Lord Myners, the former City minister, who asked the Government whether the company, its board and its advisers were being investigated or if there were plans for a probe.

The City grandee posed the parliamentary question the day after Quindell founder Rob Terry was ousted as chairman in the wake of his controversial share dealings. A spokesman for Quindell said: “We have had no contact from either LSE [London Stock Exchange] or FCA [Financial Conduct Authority] on any of these matters.”

When asked by The Telegraph why he had taken an interest in Quindell, Lord Myners said: “You don’t need a truffle hog to be curious about this company.”

Lord Myners’s query, which was first reported by the Financial Times, was answered at the start of December by Baroness Neville-Rolfe, the former Tesco director of corporate affairs, who noted that “any enquiry relating to possible market abuse sits within the remit of the Financial Conduct Authority”.

The Baroness said: “The Government’s Insolvency Service has discretionary powers under the Companies Acts to conduct enquiries on behalf of the Secretary of State where it appears that there has been misconduct in relation to the affairs of any company, including those not subject to formal insolvency.

“For the investigation process to be effective it is essential to maintain confidentiality at all stages and there is also a need to protect the commercial interest of companies against the danger of damage from malicious complaints.

“For these reasons there are legal restrictions on disclosing information obtained during an enquiry and The Service does not confirm or deny whether an investigation of a particular company is taking place.

“Where other regulators and investigating agencies are involved, the Insolvency Service would liaise closely to ensure public money is not wasted duplicating resources.”

Mr Terry was forced from the board of the Aim-listed group last month when it emerged that he had effectively sold shares to an American stock lending firm, Equities First Holdings (EFH), as part of a complex financing deal.

The arrangement was initially described as a loan to help him raise funds to increase his Quindell stake. However, the company was later forced to admit the agreement was a sale and repurchase deal and that Mr Terry’s net shareholding in the company had decreased, news that sent the stock plummeting.

The shares fell further when it was revealed that one of Quindell’s house brokers had resigned.

Canaccord Genuity gave notice of its resignation to Quindell in October. But Quindell only publicly announced the broker’s exit in November, after the trio had struck the EFH agreement.

The insurance outsourcer disclosed Canaccord’s resignation when it decided, following advice from its remaining broker Cenkos Securities, that the information was market-sensitive.