Lookers says FCA has closed its investigation

Shares of Altrincham-based car dealership Lookers plc rose almost 5% on Tuesday after published a stock exchange update about the investigation by the enforcement division of the Financial Conduct Authority (FCA) into the group’s sales processes between January 1, 2016, and June 13, 2019.

The FCA has advised the board of its decision to close the investigation against Lookers Motor Group Limited, the group’s FCA regulated entity, for the possible mis-selling of regulated products, and associated issues relating to potential customer detriment during the period,” said Lookers.

In closing the case, the FCA further advised the board that it does not intend to use its statutory powers to apply any sanction against the group in relation to the matters under investigation.

“However, the FCA made its concerns clear relating to the historic culture, systems and controls of the group.

“The board fully accepts the FCA’s comments and is committed to continue the progress made to date in transforming both culture and the customer experience.

“The group continues to have an open and cooperative relationship with the FCA Supervisory team.

Having already invested in a major remediation plan, including new systems, controls and process improvements, the board remains fully committed to the group’s ongoing investment programme, driving the creation of the right culture, working towards an industry leading customer experience.”

Lookers said it will now release the provision of £10.4 million which was made in relation to any potential liabilities arising from the investigation.

Lookers CEO Mark Raban said: “It is an important time for Lookers as we emerge from a difficult period dealing with both the challenges of our legacy issues and COVID.

“We are pleased that the FCA has decided to close its investigation and we can now look forward and continue to build our business for the benefit of our customers and other stakeholders.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.