Key points:
- Amigo shares rose 5.20% after announcing crucial board changes.
- The lender also appointed Jerry Low to multiple committees today.
- The appointments could be in line with FCA regulations.
The Amigo Holdings PLC (LON: AMGO) share price rose 5.2% after the guarantor lender announced critical changes to its board and various management committees in what could be an attempt to meet specific regulatory requirements.
The lender appointed Jerry Loy as the chairperson of the critical Audit Committee, replacing Jonathan Roe, who will be stepping down from the committee. Jerry Loy’s appointment has to be approved by the UK Financial Conduct Authority (FCA) under the Senior Managers Regime.
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Amigo has said it is working closely with the FCA to ensure that it meets all the requirements to resume lending within the timeframe agreed on by the High Court during the approval of its new business scheme.
Jerry Loy will also become a member of Amigo’s Nomination Committee, replacing Michael Bartholomeusz, who is stepping down. Jerry will also join the Risk Committee replacing Maria Darby-Walker, who will leave the committee.
The appointment of Jerry Loy to these critical committees is not accidental. Amigo would also do this if it were sure that the FCA would approve Jerry’s appointment and that the move would bring the lender closer to meeting the FCA’s stringent requirements to resume lending activities.
Investors cheered today’s appointments because they were most likely driven by the company’s urge to meet the FCA’s rules and regulations to facilitate a much faster return to lending activities.
Amigo is making good progress towards resuming lending activities as it continues to work closely with the FCA to ensure everything is in order before it can resume lending. Luckily for Amigo, the market for its guarantor loans has increased over the past two years due to the impact of the coronavirus pandemic.
Investors and potential customers should continue following the company’s updates to be informed when the lender is ready to resume leading activities.
*This is not investment advice.
Amigo share price.
The Amigo share price rallied 5.20% to trade at 4.095p, rising from Thursday’s closing price of 3.895p.
