The City’s financial watchdog also fined two former top executives at the high street bank.
The Financial Conduct Authority (FCA) has fined Metro Bank and two of its former executives more than £10m for publishing misleading information to investors.
According to the FCA, Metro Bank knowingly published incorrect information for its risk-weighted assets in an October 2018 trading update.
The City regulator said it also decided to fine former CEO Craig Donaldson and former CFO David Ardin £223,100 and £134,600 respectively because they were knowingly concerned in the breach.
Donaldson and Ardin were aware that the figure was wrong and would require “substantial correction”, the FCA said, but failed to qualify or explain this to investors.
When Metro Bank admitted its £900m error back in January 2019, it contributed to a 39 per cent fall in the company’s share price.
“Listed firms must ensure that the information they are disclosing to the market is right. This is what investors are entitled to receive,” executive director of enforcement and market oversight Mark Steward said.
“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.”
While Metro Bank has not appealed the FCA’s decision, Donaldson and Ardin have.
“While we're disappointed by today's ruling from the FCA's Regulatory Decisions Committee we welcome the fact there is no finding of any dishonesty or criticism of our integrity,” a representative for the two former executives said.
“We are appealing the decision, and until that process is complete, we will not be making further comment.”
Metro Bank said it had “co-operated fully with the FCA investigation” and accepted the outcome, bringing the issues to a close.
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