A PROBE has been launched by the FCA into accounting statements made by controversial insurer Quindell.
The AIM-listed insurer, which has gone through a turnaround in its board, corporate structure and accounting policies in recent weeks, said that the Financial Conduct Authority had begun an investigation into public statements Quindell had made regarding its 2013 and 2014 accounts. A new group FD, Mark Williams, was appointed in April.
A review by PwC into Quindell’s accounting policies, still ongoing, had earlier found that it had “been at the aggressive end of acceptable practice” in terms of recognising revenue and deferring case acquisition costs. While many of the accounting issues were related to its disposed professional services division, the continuing operation is taking a more conservative approach to accounting in the future.
Revisions of previous accounts will largely be non-cash-based, Quindell said in a statement to the London Stock Exchange, but the changes will have a material effect on its y/e 2013 statements and subsequent interim report.
Its AIM shares have been suspended pending auditor sign-off of its 2014 accounts.
Quindell has also begun a review, along with its auditors, of a number of its historic transactions and acquisitions.