Bigblu Broadb. Regulatory News (BBB)

25 Apr 2005 13:43

Berkeley Berry Birch PLC25 April 2005 For immediate release 25th April 2005 Berkeley Berry Birch plc ("BBB" or the "Group"): Update on FSA Investigations and Regulatory Capital Further to the announcement dated 4th April 2005, and as a result of a furthermeeting and discussions with the FSA, the Board of BBB plc would like to updatethe market as follows: FSA investigations The FSA has requested further specific information and this is in the process ofbeing provided by the Group over the next month. Provided that the FSA issatisfied with this additional information, the Board believes that it should bepossible to conclude both investigations reasonably quickly. It is not possibleto estimate any settlements at this stage. Regulatory Capital Whilst the Group is forecast to report a positive net current asset position asat 31 March 2005, the Group's three Financial Services subsidiaries had acombined regulatory capital resource requirement deficit of £2.4 million as perthe unaudited FSA returns. Following the meeting with the FSA, the Directorshave clear guidance on what is required to correct the position. The FSA statedthat it is enforcing a formal timetable for the rectification of the regulatorycapital position as per its own internal procedures. Subject to FSA approval, the Group intends to implement initiatives to complyfully with its regulatory capital requirements. These include a reorganisationof the regulated business model so as to optimise its overall regulatory capitalposition. Current indications are that such a reorganisation will result in anestimated £0.6m reduction in the current regulatory capital shortfall. The Board is exploring means of raising finance to enable those subsidiariesconcerned to comply with FSA regulatory capital requirements, the extent ofwhich are dependent upon the planned reorganisation. The initiative to bringinvestigations to a close will be a key element, however, the Board remainsconfident of the outcome of the fund raising process. - ENDS - For further information please call: Clifford LockyerChairman and Chief Executive Officer07967 680565 This information is provided by RNS The company news service from the London Stock Exchange