Ayondo shares in limbo pending clarity over unit's compliance with UK authority

Singapore

CATALIST-LISTED Ayondo, which runs a social trading platform, said on Thursday night that auditors KPMG and Ernst & Young are in a disagreement over how a key metric of financial strength for one of its operating subsidiaries is calculated.

Ayondo Markets Limited (AML), a 99.91 per cent-owned subsidiary of Ayondo, is one of two primary subsidiaries through which the group offers social trading and brokerage services in the UK.

Since AML carries on activities which are regulated by the UK's Financial Conduct Authority (FCA), such as dealing in CFDs (contracts for difference) as principal and spread betting, it is required to maintain a prescribed Common Equity Tier 1 (CET1) …