“The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have chose to start investigations into certain former HBOS senior managers”, the regulators said.
Advertisement
Despite KPMG being vindicated in a joint report from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in November, the FRC came under renewed pressure to investigate the firm.
More than seven years after the collapse of HBOS, City regulators have finally opened investigations into the former bosses of the bank, which was rescued by Lloyds and the government at the height of the financial crisis.
The Green review, also published last November, found the FSA’s decision not to pursue at least 10 former HBOS executives, including former chief executives Andy Hornby, and James Crosby and former chairmen Lord Stevenson, was “materially flawed”.
The regulator’s announcement follows a report by Andrew Green QC about the FSA’s enforcement activity after HBOS’ failure.
The watchdogs did not name the ex-managers who will be investigated.
These included Mike Ellis, former finance director, Colin Matthew, ex-head of the global division, and Lindsay Mackay, former boss of the treasury division.
The FCA and PRA review concluded the “ultimate responsibility for the failure of HBOS rests with the Board and senior management”.
He was fined £ 500,000 and banned for life from working in the City.
While the former bosses could be banned from working in financial services as a result of the regulators’ investigations, it is now too late for them to receive fines for their actions.
Regulators at the FSA only pursued him because they thought they had a good chance of a successful case, Green said in his report, which was a mistake.
Advertisement
Eight former non-executive directors of HBOS were criticised in the report, although they said they disagreed with its findings.
