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The FCA has imposed a censure on UAE-based NMC Health after it was found to have been operating dual sets of accounting records, which have misled investors by underplaying its debt of as much as $4bn (£3.2bn).
The financial authority found that between March 2019 and February 2020, NMC published a series of financial statements and several clarification announcements which contained materially inaccurate information about its debt position.
As it is anticipated that no funds will remain after creditor claims have been met, the FCA has imposed a censure rather than a financial penalty which would reduce the funds available to creditors.
While the company’s books, records and directors were based in the United Arab Emirates, the FCA with cooperation from NMC’s administrators and international partners, secured material which “made clear that the picture it presented to the market was inaccurate”.
Prior to falling into administration in April 2020, the healthcare operator entered the FTSE100 in 2017.
Steve Smart, joint executive director of enforcement and market oversight, said: “The concealment of NMC’s debt position and subsequent collapse has left creditors, including investors, out of pocket.
“While the administrator has sought to recover any value and distribute to creditors, the FCA has sought, through the public censure, to explain how and why investors were misled to ensure that lessons are learnt.”
He added: “We have engaged with law enforcement agencies abroad and will continue to provide any further support they may request to help combat financial crime.”
