FCA and PRA investigating HBOS managers
The Financial Conduct Authority and the Prudential Regulation Authority have launched a fresh probe into the role former HBOS senior managers played over the bank’s collapse.
The former bosses, which included ex-chief executive Andy Hornby and his chairman, Lord Stevenson, could be banned from all future activity in the City.
In November a lawyer, Andrew Green QC, examined the response to the bank’s collapse and said regulators should “do what their predecessor, the Financial Services Authority failed to do” and properly examine what brought the bank to oblivion.
An FCA statement confirmed: “The Financial Conduct Authority and the Prudential Regulation Authority have decided to start investigations into certain former HBOS senior managers.
“These investigations will determine whether or not any prohibition proceedings should be commenced against them.
“The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers.”
The FCA and PRA are powerless to issue fines against those who worked at the bank between 2004 and 2008 due to a six-year statute of limitation however they can still issue bans.
The only person to face action was former corporate division chief executive Peter Cummings, who was fined £500,000 and banned from holding a senior role in financial services in September 2012.
At the time of its collapse and subsequent bailout in September 2008 HBOS traded as Halifax and Bank of Scotland.