City watchdog FCA urged to investigate controversial share selling by Quindell founder Rob Terry
Request: The Financial Conduct Authority has been contacted by a large number of small shareholders in Quindell urging it to open a probe
The City watchdog has been urged to investigate controversial share selling by Quindell founder Rob Terry.
The Financial Conduct Authority has been contacted by a large number of small shareholders in the technology group urging it to open a probe.
Retail investors have seen more than 90 per cent of their money wiped out following the collapse of the company’s shares in the past year.
Terry, who was chairman until he was fired last month, sold shares in the company worth £7.5m but purchased only £1.2m of stock – meaning he was able to walk away with a £6.3m windfall when he was forced out.
The London Stock Exchange has already launched an inquiry into Quindell.
A Quindell spokesman said: ‘We have had no contact from either the LSE or the FCA on any of these matters.’
A short selling hedge fund made millions from betting against Quindell.
US firm Tiger Global used a labyrinth of Cayman Islands-based companies. Its identity was only revealed after an investigation by hedge fund specialists at the Financial Times last week.
MEPs have vowed to ‘rethink the legislation’ that regulates American hedge funds operating in Europe.
The current ‘loophole’ that allowed Tiger to remain hidden for so long is likely to be amended.
German MEP Sven Giegold said: ‘If the European rules allow hedge funds to do this, then the rules need to be changed.
‘Short sellers should be required to declare their identities, and not use offshore companies in this way.’
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