Britain’s Financial Services Authority has ordered UFJ Holdings Inc., which is listed in London, to report by mid-September on the huge gap between its earnings projection and actual results for fiscal 2003, UFJ officials said Wednesday.
UFJ said April 28 it expected to post a consolidated net profit of 78 billion yen for the last business year, which ended on March 31. Barely a month later, on May 24, it reported a net loss of 400 billion yen.
UFJ is listed on the London Stock Exchange and the authority is believed to have issued the order because the large discrepancy between the projection and financial statement may have affected stock trading.
The authority told UFJ that it may impose a fine if it finds the group has violated market regulations. According to UFJ officials, the company had no intention of deceiving investors.
In June, Japan’s Financial Services Agency issued four business improvement orders to UFJ, including one over the earnings projection and the actual results.
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