Financial regulator issues warning notice against Carillion
The UK’s financial regulatory body has issued a warning notice against Carillion, saying the collapsed engineering giant and relevant directors acted “recklessly”.
The Financial Conduct Authority (FCA) said announcements made in December 2016 and in March and May 2017 did not accurately or fully disclose the financial performance of the company.
The FCA said in a statement: “They made misleading positive statements about Carillion’s financial performance generally and in relation to its UK construction business in particular, which did not reflect significant deteriorations in the expected financial performance of that business and the increasing financial risks associated with it.”
The FCA said directors failed to ensure announcements for which they were responsible “accurately and fully reflected” matters.
Carillion collapsed into administration in 2018 with liabilities of almost £7 billion, leading to thousands of job losses.
The FCA said a public censure is proposed, not a financial penalty.