Britain’s financial watchdog, the Financial Conduct Authority, has fined former Carillion chief executive Richard Howson £237,700 for his role in issuing misleading market statements before the construction giant’s collapse.
Carillion, once one of the UK’s largest contractors employing around 43,000 staff, went into liquidation in January 2018 with liabilities of approximately £7bn.
In a statement, the FCA said it had found that Howson “acted recklessly and was knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.” The penalty was finalised after Howson withdrew his challenge to the regulator’s findings, allowing the decision to take effect.
While the group finance director was deemed primarily responsible for ensuring the accuracy of market disclosures, the regulator said Howson played a significant role as the board member with the deepest knowledge of the company’s construction and contracting operations.
Earlier this year, the FCA also imposed fines on two former Carillion finance directors after they dropped appeals against conclusions that they had misled investors ahead of the company’s collapse.
