The FCA Fined Metro Bank £10M For Lying To Investors
The City’s financial watchdog also fined two former top executives at a high street bank.
Metro Bank and two of its former executives have been fined more than £10 million by the Financial Conduct Authority (FCA) for giving investors false information.
The FCA says that in an October 2018 trading update, Metro Bank put out wrong information about its risk-weighted assets.
The City regulator said it also decided to fine former CEO Craig Donaldson and former CFO David Ardin £223,100 and £134,600, respectively, because they knew about the breach.
The FCA said that Donaldson and Ardin knew the number was wrong and would need “substantial correction,” but they didn’t warn investors or explain this.
When Metro Bank admitted its £900 million mistake in January 2019, the company’s share price fell by 39%.
“Listed firms must ensure that the information they disclose to the market is right. This is what investors are entitled to receive,” executive director of enforcement and market oversight Mark Steward said.
“The UK’s Listing Rules impose high standards on issuers and their officers, which Metro Bank, Mr Donaldson and Mr Arden failed to meet in this case.”
Metro Bank hasn’t tried to change what the FCA said, but Donaldson and Ardin have.
A representative for the two former executives said they are disappointed by today’s decision from the FCA’s Regulatory Decisions Committee. Still, they are glad that there is no finding of dishonesty or criticism of our integrity.
“We are appealing the decision, and until that process is complete, we will not be making further comment.”
Metro Bank said that it had fully cooperated with the FCA investigation and accepted the results, which ended the problems.
