Shell announces agreements to resolve FSA, SEC investigations

Royal Dutch/Shell Group Thursday said it has reached agreements in principle (AIPs) with the UK's Financial Services Authority and the staff of the US Securities and Exchange Commission to resolve their pending inquiries related to the company's oil and gas reserves revisions.

July 29, 2004

2 min read

Maureen Lorenzetti
Washington Editor

WASHINGTON, DC, July 29 -- Royal Dutch/Shell Group Thursday said it has reached agreements in principle (AIPs) with the UK's Financial Services Authority and the staff of the US Securities and Exchange Commission to resolve their pending inquiries related to the company's oil and gas reserves revisions.

The company will pay a total of $151 million in government fines—$120 million to the SEC and the equivalent of about $31 million to UK regulators. SEC officials refused comment on the Shell announcement.

In connection with the AIP with the FSA, Shell said in a written statement that it " will agree, without admitting or denying the FSA's findings or conclusions, to the entry of a Final Notice by the FSA finding that Shell breached market abuse provisions of the UK's Financial Services and Markets Act 2000 and the Listing Rules made under it."

With the SEC, "Shell will consent, without admitting or denying the SEC's findings or conclusions, to an administrative order finding that Shell violated, and requiring Shell to cease and desist from future violations of, the antifraud, reporting, recordkeeping, and internal control provisions of the US federal securities laws and related SEC rules."

Along with the $120 million civil penalty the company plans to spend an additional $5 million developing a comprehensive internal compliance program. The AIP with the SEC staff is subject to final approval by the SEC.

Contact Maureen Lorenzetti at [email protected].