The Prudential Regulation Authority investigated the management and governance at Aldermore ahead of the challenger bank’s plans to float the on the stockmarket.
The Financial Times reports the regulator launched a review of the bank’s governance last year after chairman Sir David Arculus left the company in 2013.
Sources have told the newspaper the regulator was concerned over whether pressure from a dominant shareholder led to the chairman leaving. The PRA was also said to have been concerned about a raft of new lenders entering the market with board members lacking the relevant banking experience.
The PRA review concluded last year and recommended Aldermore strengthen its corporate governance.
Aldermore said in its flotation prospectus the PRA was “generally supportive of Aldermore’s governance arrangements” and the “appropriateness of AnaCap’s influence and the direction being pursued on board governance.”
Aldermore is majority-owned by private equity firm AnaCap, and floated in March with a listing price of 192p per share. In early trading this morning Aldermore shares were trading at 238p.
AnaCap and the PRA declined to comment to the newspaper.