Dixons Carphone PLC Statement re conclusion of FCA investigation (6662S)
13 March 2019 - 6:01PM
UK Regulatory
TIDMDC.
RNS Number : 6662S
Dixons Carphone PLC
13 March 2019
Dixons Carphone plc
FCA Investigation into Historic Geek Squad Mobile Phone
Insurance Selling
The FCA has concluded an investigation into Geek Squad mobile
phone insurance selling processes at The Carphone Warehouse Ltd
that took place between December 2008 and June 2015 and has
identified key areas where, in that period, the FCA has determined
that the company did not meet expected standards. In concluding the
investigation, the FCA has imposed a fine of GBP29.1m on the
company, inclusive of the discount applied on early settlement.
Dixons Carphone has worked closely with the FCA throughout the
investigation and accepts that in the past the company's practices
fell short. As the FCA acknowledges in its decision, "Carphone
Warehouse has made significant improvements to its approach to
regulatory matters" since 2015.
The company has introduced more comprehensive customer-needs
assessments, enhanced colleague training and compliance monitoring,
invested in customer service and post-sale customer satisfaction,
and substantially increased the number of independent financial
services coaches across the Carphone Warehouse store estate.
The company has also voluntarily carried out two customer
redress programmes, covering complaints and cancellations.
As previously disclosed, the Group took certain provisions as a
charge to non-headline profits at its interims on 12 December 2018
and these were also included within the exceptional cashflow
guidance given for FY19/20 at the time. As a consequence, there is
no impact from today's announcement to the Group's guidance given
at its trading update on 22 January.
Alex Baldock, Group Chief Executive, said:
"We're obviously disappointed that Carphone Warehouse fell short
in the past. But we're a very different business today; as the FCA
acknowledges, we've made significant improvements since 2015. We're
committed to stay on that trajectory, and to make sure all
customers enjoy the right technology products and services for
them."
For further information
Assad Malic
Group Corporate Affairs Director
+44 (0) 7414 191 044
Amy Shields
Head of External Communications
+44 (0) 7588 201 442
Tim Danaher, Nick Beswick
Brunswick Group
+44 (0) 207 404 5959
Information on Dixons Carphone plc is available at
www.dixonscarphone.com
About Dixons Carphone
Dixons Carphone plc is a leading multinational consumer
electrical and mobile retailer and services company, employing over
42,000 people in nine countries. We Help Everyone Enjoy Amazing
Technology, however they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the
Nordics and in Greece. With a full range of services and support,
we make it easy for our customers to discover, choose and enjoy the
right technology for them, throughout the life of the product. Our
core multichannel operations are supported by an impressive
distribution network and sourcing office in Hong Kong and a
state-of-the-art repair facility in Newark, UK.
Our brands include Currys PC World and Carphone Warehouse in the
UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and
Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons
Travel brand has a presence across several UK airports as well as
in Dublin and Oslo, and our services are provided through Team
Knowhow in the UK, Ireland and the Nordics.
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END
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