WH Ireland (LON:WHI) shares fell on Friday after it cautioned that a substantial fine from City regulator the FCA is likely.
In a stock market statement it said that it continues to discuss a possible negotiated settlement with the watchdog, relating to what it referred to as a “previously communicated contingent liability” in the period between January and June 2013.
It comes after an FCA review into the stockbroker’s control procedures, under ‘Principle 3’ of the regulator’s rules of business.
Principle 3 requires regulated firms to take reasonable care to organise and control its affairs responsibly and effectively, and requires that they have adequate risk management systems.
Changing hands at 87.3p, the AIM quoted company was down about 13%.