BusinessCompany NewsCantor’s BCG float springs a leak

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:

Internal controls: the chains gang

London a top destination for IPOs 

SEC eases listing requirements 

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor