FSA censures BDO for failings as sponsor

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The Financial Services Authority (FSA) has make a landmark censure of accountants BDO LLP for failings while acting as a sponsor during a takeover deal.

BDO acted as the sponsor for Shore Capital Group’s takeover of Puma Brandenburg Limited during May 2009. But the FSA said BDO failed to liaise with the UK Listing Authority (UKLA) ahead of the deal to see whether Shore Capital's shares should be suspended. This was a requirement as the deal could have constituted a reverse takeover because of the significant size of the target company. Instead, BDO agreed with Shore Capital to delay contacting the UKLA until after the announcement and attempted to avoid classifying the transaction as a reverse, despite recognising at the time that ...

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