Vince Cable urges City watchdog to give details on alleged Quindell ‘market abuse’Comments Off on Vince Cable urges City watchdog to give details on alleged Quindell ‘market abuse’
Vince Cable, the Business Secretary, and Andrew Tyrie, chairman of the Treasury Select Committee, have written to the Financial Conduct Authority (FCA), calling for information on its response to the share-price collapse of the insurance outsourcer Quindell last April.
A number of other MPs and hundreds of investors have also petitioned the watchdog.
Cable said allegations of “potential market abuse” raised by a constituent were “deeply worrying” and posed questions to the regulator about its response to the incident in his letter to the City watchdog.
The value of Quindell, listed on AIM, plummeted by £1 billion last year after a US short-seller published allegations about the business online.
The company denied the claims and won a court case in the UK against the short-seller, which failed to provide a defence.
But the shares have not recovered and Quindell’s investors, most of them individuals rather than institutions, have been left with hundreds of thousands of pounds’ worth of losses.
Quindell could not be reached for comment.