FSB’s DMA refers Blue Financial Services
Pretoria - The Directorate of Market Abuse (DMA) has referred a case against Blue Financial Services Limited (Blue) to the Enforcement Committee of the Financial Services Board
On 23 April 2009 Blue published a trading statement regarding its anticipated earnings per share and headline earnings per share for the financial year ended 28ht February 2009. The trading statement included numbers that were incorrect due inter alia to an incorrect application of the accounting principles set out in IFRS 2 (International Financial Reporting Standards) which resulted in an incorrect; treatment of share-based payments made to Blue's employees in terms of an employee share incentive scheme; and an incorrect recognition of Blue's Zambia based operation, Nedfin Limited, as a subsidiary under its Botswana based operations (Blue Employee Benefits (Propriety) Limited) whereas it was a subsidiary of Blue Financial Services (Zambia) Limited, which resulted in a restatement of foreign exchange losses on intergroup flow of funds.
The incorrect recognition of Nedfin Limited was also included in publications on 21st May 2009, 31 August 2009 and on 30 November 2009.
The Enforcement Committee took several mitigating circumstances into account including the fact that Blue accepted its wrongful conduct, cooperated fully with the investigation and did not waste the Enforcement Committee's resources on a protracted case. The incorrect publications were not intentional and were not intended to mislead the investing public. A penalty of R500.000 was imposed on Blue. The order is available on the FSB website at www.fsb.co.za
Insurance Biz proudly displays the "FAIR" stamp of the Press Council of South Africa, indicating our commitment to adhere to the Code of Ethics for Print and online media which prescribes that our reportage is truthful, accurate and fair. Should you wish to lodge a complaint about our news coverage, please lodge a complaint on the Press Council's website, www.presscouncil.org.za or email the complaint to enquiries@ombudsman.org.za. Contact the Press Council on 011 4843612.
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