Revolution Beauty faces FCA probe over market abuse
The investigation will examine potential breaches that occurred between July 2021 and September 2022
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Revolution Beauty has revealed that the Financial Conduct Authority (FCA) has launched an investigation into the retailer over potential breaches of market abuse regulation.
The investigation will examine potential breaches that occurred between July 2021 and September 2022.
Revolution Beauty said in a statement: “The Financial Conduct Authority has today notified Revolution Beauty that it has commenced an investigation into potential breaches of the Market Abuse Regulation (EU) 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) in relation to certain matters in the period from July 2021 to September 2022. Revolution Beauty is cooperating fully with the FCA.”
It added that further announcements would be made “as appropriate”.
News of the investigation comes shortly after the group’s ongoing feud with Boohoo was brought to an end with the signing of a settlement agreement that will see major board changes at the beauty retailer.
As part of the agreement, CEO Bob Holt OBE and chairman Derek Zissman agreed to resign from Revolution’s board, although Holt will remain as interim CEO until 31 August 2023. The settlement also saw Boohoo agree to withdraw its requisition of a general meeting.
An ongoing battle between the two companies first began when Boohoo, which owns a 26.6% stake in Revolution, attempted a boardroom coup of the group.
Boohoo then criticised Revolution and raised “serious concerns” after the beauty company reappointed three executives immediately after they were removed at its annual meeting last month.
Revolution said it received “very positive reaction from all stakeholders” following its actions, adding that the move was “firmly validated” from the stock market response, which saw its shares rise. It noted that rehiring its directors was the only way to secure readmission to trading on AIM.
The company’s shares were restored last month after being suspended for six months when it failed to produce financial results on time.
