US SEC, UK's FSA confirm settlements with Shell over reserves
London (Platts)--24Aug2004
US and British financial regulators Tuesday confirmed they have agreed settlements totalling over $150-mil with Shell for its overstatement of reserves which has rocked investor confidence in Europe's second-biggest oil company. Shell, which recategorized 22% of its proved oil and gas reserves since the start of this year, and replaced three senior board executives over the downgrades, is to pay a $120-mil civil order to the US' Securities and Exchange Commission, which found Shell breached US antifraud, reporting, recordkeeping laws. It will also pay a token $1 in "disgorgement" and $5-mil to implement an internal control program. In the UK, it will pay a record GBP17-mil ($30.8-mil) to Britain's Financial Services Authority for breaching market-abuse provisions. Shell has said the agreements will clear it of any further regulatory action from the agencies over its reserves debacle.
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