FCA fines Guaranty Trust Bank 7.6 million for AML failures
The FCA has fined Metro Bank £10million for breaching the listing rules by publishing incorrect information to investors. Former Metro Bank CEO Craig Donaldson and former CFO David Arden were both issued with combined fines totalling £357,700. Metro Bank published incorrect information concerning its Risk Weighted Assets (RWA) figure, on which its regulatory capital requirements are based, in their third quarter trading update.
Metro Bank was aware that this figure was wrong and did not rectify or explain it. As a result, Metro Bank failed to take reasonable care to ensure that the October Announcement was not false and misleading and did not omit relevant information. FCA executive director of enforcement and market oversight Mark Steward states, “Listed firms must ensure that the information they are disclosing to the market is right. This is what investors are entitled to receive”.
In the meantime, a Final Notice has been issued to Metro Bank, which has not been challenged, however, the two Decision Notices given to both Mr Donaldson and Mr Arden, have been referred to the Upper Tribunal, where they will each present their case. The Upper Tribunal will determine whether to uphold the FCA’s decisions against the two individuals or not and whether there are any other actions that should be taken by the FCA.