FSA Update / Current Trading

4 Apr 2005 17:10

Berkeley Berry Birch PLC04 April 2005 Berkeley Berry Birch plc ("BBB") Update on FSA Investigations and Current Trading FSA investigations Further to our announcement on 10 December 2004 the Board of BBB plc providesthe following update. Investigation into Regular Savings Premium & Whole of Life Sales The investigation into the sale of the above products is ongoing and the Boardof Berkeley Independent Advisers ("BIA"), with support from its parent company,continues to provide its full assistance to the Financial Services Authority ("FSA"). The Board of BIA, with support from its parent company, continues to liaise withthe FSA on the nature and extent of any investigation into past business. As aresult, the costs of such an exercise remain uncertain at this point, althoughthey could be substantial if a full review is required. Liquidation and Sale of Berry Birch & Noble Financial Services As a matter of clarification, the above investigation is separate from thecontinuing FSA investigation into Berry Birch & Noble Financial ServicesLimited, which was detailed in the most recent annual report of BBB. Trading performance for the year ended 31 March 2005 Following a slowdown within our Financial Services Division in the last quarter,turnover for the year ended 31 March 2005 is likely to be below marketexpectations and will now be broadly in line with that reported in the previousfinancial year. This slowdown mainly arises from the impact of the FSAinvestigation on BIA as sales of the products under investigation are no longerbeing made. Despite the lower turnover, it is anticipated that the operatingloss, before exceptional items and goodwill impairment and amortisation, will bein line with market expectations. This operating loss excludes any costs thatmay arise from the investigation referred to above. Regulatory Capital The recent downturn in trading performance within BIA and the additional costsof two FSA investigations has put increasing pressure on the group's regulatorycapital position. The group is in active dialogue with the FSA on this issue. 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