Aberdeen Standard Investments is suing beleaguered Provident Financial regarding alleged delays in disclosing a regulatory investigation into its credit card business.
The legal dispute relates to the subprime lender's Vanquis Bank subsidiary, which was under investigation by the Financial Conduct Authority (FCA) regarding the sale of its repayment option plan as revealed in the company's August update, The Times reports. The probe led to a £172m settlement with the FCA, which included £157m compensation to 1.2 million people who took out the product before sales were suspended in April 2016 without Vanquis properly explaining the interest charges, and forced Provident to tap investors for £331m in emergency capital through a discounted rights issue. ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
