Business
Statement re Conclusion of Enforcement Action
Statement re Conclusion of Enforcement Action.
About this update from Amigo Resources Plc
[{"type":"text","content":"\n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION \n \n \n \n 14 February 2023\n \n \n \n \n Amigo Holdings PLC\n \n \n \n \n \n \n \n Conclusion of Enforcement Action\n \n \n \n Amigo Holdings PLC (\"Amigo\" or \"the Company\"), a provider of mid-cost credit in the UK, welcomes the conclusion of the previously announced Financial Conduct Authority ('FCA') Enforcement proceedings into the group's historic lending practices and complaints' handling processes (the 'Legacy Issues'). \n \n \n Amigo's new Board and management have cooperated with the FCA's investigation which has now concluded. The Company accepts the findings of the Enforcement proceedings which are set out in detail within the FCA's Final Notice published on its website.\n \n \n \n \n \n Although Amigo is not required to pay a financial penalty, it accepts that if it were not for its current financial position, the Company would have been subject to a penalty of £72,900,000. In reaching agreement on the level of the final penalty, the FCA recognised that any penalty would cause Amigo serious financial hardship and would have threatened the Company's ability to meet its commitments to redress creditors identified under Amigo's Scheme of Arrangement, which was sanctioned by the High Court in May 2022 (the \"Scheme\").\n \n \n \n \n \n The final conclusion of the Enforcement proceedings represents an important milestone for the Company in bringing the Legacy Issues to a close. In reaching this milestone, the Company acknowledges the time and resource allocated by the FCA to review the historic business and to identify previous customer harm.\n \n \n \n \n \n At a wider level the outcome from the investigations and the contents of the Final Notice will, we believe, provide useful guidance to both Amigo and all firms which provide credit to customers who are not readily able to access the services of the mainstream credit providers.\n \n \n \n \n \n Since the Enforcement Action commenced in 2020 the Board of the Company has completely changed and the senior management team substantially refreshed by the engagement of subj...