SFO hits Tesco with £129m fine while FCA demands £85m shareholder compensation scheme

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Tesco has agreed to pay a £129m fine to the Serious Fraud Office (SFO), while the Financial Conduct Authority (FCA) has also instructed the group to set up a £85m compensation scheme after the retailer misled around 10,000 investors over the value of its stocks and shares in an August 2014 trading update.

Tesco fell in early trading after it was announced the supermarket and the SFO reached an agreement on the £129m fine, while Teso has also entered into a deferred prosecution agreement with the SFO, meaning the group will not be prosecuted on condition it fulfills certain requirements, including payment of the fine, according to City AM. In addition, the FCA released a statement that said Tesco agreed it committed market abuse in the 29 August trading update, and will pay compensation to investors who purchased Tesco shares and bonds on or after 29 August 2014 and who still held the secu...