Manchester Building Society Statement regarding costs hearing (6353O)
18 Maggio 2018 - 5:58PM
UK Regulatory
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RNS Number : 6353O
Manchester Building Society
18 May 2018
This announcement contains inside information
Statement regarding costs hearing
Further to the announcement on 2 May 2018 regarding the outcome
of the court case Manchester Building Society v Grant Thornton UK
LLP, a hearing took place today regarding costs.
The case related to audit services provided by Grant Thornton UK
LLP ("Grant Thornton"), former auditors of Manchester Building
Society ("the Society").
On 2 May 2018 the High Court awarded damages of GBP335,727
including interest to the Society, considerably below the amount
claimed. As stated at the time the Society was disappointed. The
Society has today been granted leave to appeal the decision.
At the costs hearing today the High Court awarded interim costs
to Grant Thornton. The amount of interim costs payable will be
calculated in the coming days, and the Society expects to confirm
this figure next week.
In addition to the interim costs, the Society anticipates that
it will have some further liability in respect of Grant Thornton's
overall costs which will be determined following a detailed
assessment that is expected to take some months.
As set out in the results for the year ended 31 December 2017,
the Society met its Individual Capital Guidance ("ICG") in total
capital terms, but not the requirement for the level of Common
Equity Tier 1 ("CET1") regulatory capital. The Society's
understanding is that the impact of the interim costs award will
mean the Society will not meet a regulatory requirement to hold
4.5% of CET1 capital against risk weighted assets (the "4.5%
requirement").
The Society is discussing with the Prudential Regulation
Authority ("PRA") the consequences of not meeting the 4.5%
requirement, including any actions to be taken by the Society, and
any steps that may be taken by the PRA. The Society therefore
continues to discuss and consult with the PRA on the future
strategic and capital position of the Society. The outcome and
timing of the regulatory process is uncertain. There continues to
be material uncertainty regarding the Society's long term
prospects.
The Society continues to have a strong liquidity position.
The person responsible for arranging the release of this
announcement on behalf of Manchester Building Society is
Christopher Gee, Society Secretary.
Enquiries
Andy Donald - Maitland
020 7379 5151
adonald@maitland.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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