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Report: Provident Financial faces legal complaint over Vanquis Bank probe

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Report: Provident Financial faces legal complaint over Vanquis Bank probe

Aberdeen Standard Investments is seeking compensation from Provident Financial Plc for losses incurred due to the embattled British subprime lender's failure to properly disclose details of a regulatory probe into unit Vanquis Bank Ltd., The Times of London reported.

Provident Financial disclosed in August 2017 that the U.K. Financial Conduct Authority was investigating Vanquis Bank over alleged misselling of its repayment option plan ancillary product. In February 2018, Provident Financial announced a rights issue to raise gross proceeds of about £331 million and agreed to pay more than £170 million to settle the FCA investigation.

Lawyers for Aberdeen Standard Investments, which owns about 3% of Provident Financial, wrote to the subprime lender in January over the issue, claiming that Provident Financial's earlier announcements about the probe were misleading or that the delay in disclosing details of the probe was dishonest under British law, The Times said.

Provident Financial disclosed the complaint in the prospectus of its rights issue but did not specify the Standard Life Aberdeen Plc unit.