• Sun. Apr 14th, 2024

FML shares trade flat after filing an application to review corrective order

ByETimes

Feb 20, 2024

By ETimes

HARARE – First Mutual Holdings Limited shares were flat at $3,600.00 after filing a lawsuit to defend its legal rights because they disagreed with the conclusions made in both the regulator’s Corrective Order and the BDO Chartered Accountants report on the separation of insurance and pension businesses.
The order followed an extensive forensic examination conducted by the Insurance and Pensions Commission (IPEC) following a backdated conflict that began in April 2022.
“The Order directs FML’s shareholders to pay significant sums in Zimbabwe dollars and in United States dollars to the policyholders in respect of perceived actual and potential losses, as assessed by BDO.
“FML respectfully disagrees with the findings in the BDO report and in the IPEC Corrective Order and believes its submissions were not properly considered.
“Interpretations of fact, accounting standards, legal and actuarial principles, as well as currency conversion issues are in dispute,” the company said in a cautionary statement.
To try to settle the points of contention, FML is consulting with impartial third-party experts.
“Accordingly, the Boards of both FML and FMHL are exploring all avenues to find a way forward. Meanwhile, in order to protect FML’s legal rights, an application for review of the Corrective Order has been filed with the High Court,” reads the cautionary statement.
While FML and FMHL will continue to cooperate with the regulator and the parent Ministry to find a solution, the group indicated that legal action has become necessary to protect FML’s interests.
“The group remains committed to the service and protection of its policyholders, and balancing the interests of all stakeholders.”
Meanwhile, the Zimbabwe Stock Exchange, opened the week negative, extending its losing streak for the seventh consecutive session.
At the close of the trading session the mainstream ZSE All Share Index lost 0.02% to close at 508,108.85 points.

On the other hand, the Top 10 Index was up 0.03% to close at 224,953.08 points.
The Medium Cap Index was down 0.08% to 2,128,961.98 points while the Small Cap Index eased 0.10% to end at 10,536,788.57 points.
Market breadth, which is measured by market sentiment, was negative, as 14 stocks recorded losses relative to 11 gainers.
Market capitalisation increased by $62.72 billion to $40.06 trillion.
The value of transactions rose 198.49% to $4.83 billion. Transactions in the shares of Delta topped the activity chart with 480 500 shares valued at $3.37 billion.

By ETimes

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