"In this case a major listed company failed to provide important information to investors on a timely basis. We require companies to keep the market informed of price sensitive information without delay so that investors can be sure they are making financial decisions based on the most up to date information.
"This is a fundamental protection for investors and is vital for the smooth operation of efficient, orderly and competitive markets."
The FSA has concluded that Marconi breached paragraph 9.2(c) of the Listing Rules when it failed to notify the Company Announcements Office "without delay" of a change in its expected performance for the half year ending September 2001 and full year ending March 2002.
Marconi changed its expectation as to its performance in the afternoon of 2 July 2001 but did not make an announcement until after the market had closed on 4 July 2001, after its stock had been suspended for a full day. On 5 July 2001, there was a twenty five-fold increase in the volume of securities and a 54% fall in the share price.
The FSA is of the view that from the afternoon of 2 July 2001 Marconi could have taken steps which would have enabled it to release the announcement by, at the latest, the evening of 3 July 2001.
