View more on these topics

FCA investigates HBOS senior managers

HBOS-PLC-dark-stormy-clouds-500x320.jpg

The FCA and Prudential Regulation Authority are investigating some former HBOS senior managers about their role in the failure in the bank.

The FCA says the investigations will “determine whether or not any prohibition proceedings should be commenced against them”.

It adds: “The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers.”

The regulator’s announcement follows a report by Andrew Green QC about the FSA’s enforcement activity after HBOS’ failure.

The long-awaited report criticised the FSA for its “flawed” investigation into the bank.

The report concluded that ultimate responsibility for the failure of HBOS rests with the board and senior management.

It said the FSA failed to give proper consideration to investigating other senior individuals and the bank itself.

Only one former HBOS director, Peter Cummings, was fined in the aftermath of HBOS’ failure.

The FCA was criticised in December 2015 after admitting it would be unable to fine any former HBOS executives because the bank’s failure fell outside the six-year statute of limitation on fines.

Recommended

6

Peter Hamilton: FCA needs to be brave to avoid another HBOS

The main conclusions of the long-awaited report on the failure of HBOS were depressingly predictable: the HBOS board was ultimately responsible for the bank’s failure but the FSA (as it was then) did not appreciate the full extent of the risks it was running and did not take sufficient steps to intervene before it was […]

4

Treasury committee chairman demands HBOS audit investigation

Treasury committee chairman Andrew Tyrie has demanded an investigation into KPMG’s role as the auditor for collapsed bank HBOS. During the preparation of a report that last month slammed the FSA for its failings in investigating the bank, the Financial Reporting Council was invited to probe KPMG’s work, but declined to do so. Tyrie describes […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. While you are at it can you ask them why they think their nigh on 100% market share of restricted resale dwellings doesn’t pose a RISK. Oh silly me that is for the PRA who don’t seem to understand the subject but their head man will also be running the FCA… I give up!

Leave a comment