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FCA unable to fine HBOS execs

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The FCA has confirmed it will not be able to issue fines to any former executives at HBOS, regardless of the conclusions of the report into its collapse to be published this week.

The report is expected to include a lengthy examination of why only one HBOS director, Peter Cummings, was fined in the aftermath of the bank’s failure.

However, the FCA says because HBOS fell apart so long ago, it will fall outside of a six year statute of limitations on fines.

The regulator is able to bar the directors of the bank from participating in the financial services sector.

None of the three former HBOS bosses expected to be named in the report still hold an active registration for controlled functions, according to the FCA register.

Former HBOS chairman Lord Stevenson has not held an approved role since 2012, when he stepped down as a non-executive director at Loudwater Investment Partners.

Similarly, former CEO Andy Hornby has not held an approved position since 2009, when he stepped down from the bank, while his predecessor Sir James Crosby has not held an FCA approved role since leaving the bank in 2006.

The trio were accused of “a colossal failure of management” in a 2013 report by the Parliamentary Commission on Banking Standards.

The publication of the report was delayed until after the election to allow for “Maxwellisation”, a process through which those criticised in reports are allowed to respond prior to publication.

Meanwhile, Sky News reports that the investigation into the failings at HBOS will find that the bank’s executive put pressure on auditors to approve sums on its financial health.

Executives at the bank reportedly asked KPMG to approve their internal analyses of the bank’s impairment charges, despite the external firm holding a more pessimistic view.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. There are lots of other people including the FD (Mike Ellis) and many others who should be publicly criticised and banned as directors.

  2. Could the FCA just ignore the law viz the 6 year limit on fines as the FOS does on the Limitation Act?

  3. Shocking! Executives involved in one of the biggest financial collapse’s in the UK avoid any sanction due to the 6 year limitation whereas advisers can be claimed against almost indefinitely under FOS rules.

    Given that the 6 year limitation must have been known about by the FCA should they have investigated and ruled on this matter well within the 6 year period.

  4. Iceland investigated, collected the evidence and has convicted and jailed 26 bankers so far – and counting. I don’t know what the number is but their financial sector is surely a fraction of ours? It’s difficult to believe they were so much more corrupt?

    I’m not suggesting that this terrible trio should necessarily follow them to jail if their failings were incompetence rather then malfeasance… but we’re still waiting for our first… most probably in vain it would seem?

  5. Knowing that this limitation exists, why was the report not completed more promptly.

    Any guesses?.

  6. So execs of businesses that can bring the country to its knees are subject to the law of the land whilst a one man band IFA can be hounded to his grave?

    Whatever happened to this ‘fair’ society we keep hearing politicians spouting about?

  7. “Maxwellisation” process was clearly and specifically designed to give carte blanche control to those criticised as to the time it took to publish critical reports on them.It is patently obvious that the legal representatives of those accused would have given the appropriate advice knowing the 6 year statute of limitations rule. The system cannot touch the banks because the banks are the system. Criticise the banks you criticise capitalism and get the communist accusing finger pointed at you. It’s a mess.

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