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28 Jan 2016 10:57am

FCA launches investigation into HBoS managers

The Financial Conduct Authority (FCA) is to investigate former HBoS senior managers over the bank’s collapse

It follows a highly critical report, published in November, which recommended that the FCA and PRA should consider launching an investigation into the role of the bank’s management team in the lead up to its near-collapse in 2008.

In a statement today the FCA said, “The FCA and the PRA have decided to start investigations into certain former HBOS senior managers.

"These investigations will determine whether or not any prohibition proceedings should be commenced against them. The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers."

The announcement comes a week after the Financial Reporting Council (FRC) launched an inquiry into KPMG and its audit of HBoS’s accounts.

The probe will focus on the Big Four firm’s auditing of the bank and why it granted it “going concern” status in 2007 a year before it had to be bailed out following the financial crash.

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.

Raymond Doherty

 

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