Cantor's BCG float springs a leak
Financial services heavyweight concedes that broking business' internal financial controls contain 'material weakness'
BGC
Partners, a broking arm of Cantor Fitzgerald, has admitted flaws in its
internal financial controls.
The shortcomings were announced as BGC prepares for a
Nasdaq listing scheduled
for later this year that hopes to raise $460m (£236m),The Sunday Times reported.
Its prospectus said: ‘Our management has identified a material weakness in
our internal control over financial reporting…. including the lack of a formal
documented, closing process designed to identify the key financial reporting
risks. This weakness may indicate a heightened risk that our financial
statements could contain a material mis-statement.’
The document also disclosed that Cantor will be in possession of a special
class of stock, entitling it to 10 times the number of votes available at
shareholder summits than investors who snap up the stock at float: ‘As a result,
Cantor will initially be able to control the election of our directors and
control our management and affairs,’
Further reading:
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SEC eases listing requirements