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The UK Financial Conduct Authority on Monday said it has fined Metro Bank PLC and two of its former directors for publishing incorrect information to investors.
The London-based retail bank said it cooperated fully with the investigation and accepted the fine of £10.0 million.
Metro Bank published incorrect information in its risk weighted assets figure in its third quarter trading update in October 2018, the FCA said. The regulator charged that Metro Bank was aware at the time that this figure was wrong and failed to explain that it was subject to an ongoing review and would therefore require a substantial correction.
The FCA also decided to individually fine former Metro Bank chief executive Craig Donaldson and former chief financial officer David Arden £223,100 and £134,600, respectively, for being knowingly concerned in the breach.
‘Listed firms must ensure that the information they are disclosing to the market is right. This is what investors are entitled to receive. 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,’ said Mark Steward, executive director of enforcement and market oversight at the FCA.
While Metro Bank decided against referring the decision to the upper tribunal, Donaldson and Arden have, where each will present their case. This renders any findings in the individuals’ decision notices to be provisional, pending a hearing and decision from the upper tribunal, the FCA said.
Metro Bank said its acceptance of the fine and cooperation with the investigation brings the matter to a close, with exception to former directors Donaldson and Arden’s individual counter-claims.
Shares in Metro Bank were up 6.6% to 113.00 pence in London on Monday morning.
By Greg Rosenvinge, Alliance News reporter
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