FCA Penalizes Former Carillion Executives for Misleading Investors

The UK's Financial Conduct Authority fined former Carillion finance directors Richard Adam and Zafar Khan for misleading investors about the company's financial status before its 2018 collapse. The pair were penalized for publishing misleading information and not maintaining adequate controls, significantly impacting public services.

The UK's financial watchdog has taken action against two former executives of Carillion, a major construction services firm that collapsed in 2018. On Monday, the Financial Conduct Authority (FCA) imposed hefty fines on Richard Adam and Zafar Khan, who occupied finance director roles at the company.

The FCA's investigation revealed that both executives were aware of significant issues within Carillion's UK construction arm but failed to disclose them in market statements. The regulator described their actions as reckless, stating they were 'knowingly concerned' in breaches of market abuse and listing rules.

Carillion's downfall, which left 7 billion pounds in liabilities, disrupted numerous public services and projects spanning schools, hospitals, and rail infrastructure. While Adam and Khan have conceded the FCA's findings, former CEO Richard Howson is contesting related allegations with a tribunal set for February 16.

(With inputs from agencies.)