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Carillion acted ‘recklessly’ and ‘misled’ markets, says FCA

17 November 2020

As a result of the ongoing inquiry being conducted by the Financial Conduct Authority (FCA) into the collapse of Carillion, a number of faults within the business have been identified.

These included the FCA opinion that the company acted “recklessly” and that it “misled” markets, with criticism of executive directors also included in the report.

The collapse of Carillion had wide-ranging impact on its supply chain and many other businesses, due to the size and scope of the company, resulting in thousands of redundancies and the closure of other organisations.

Among the long list of faults included in the FCA report was its statement that false or misleading signals were provided over the value of Carillion shares.

It also failed to ensure that its announcements were not misleading, false or deceptive. The company additionally failed to comply with its obligations within the Listing Rules.

Further to the above, the business did not act with appropriate integrity towards holders of its premium listed shares.

The FCA provided the examples of Carillion announcements in December 2016, March 2017 and May 2017, all of which contained inaccurate or misleading information about its financial performance.

These examples were used to support the statement that executive directors were “knowingly concerned in the above breaches by Carillion”.

The company’s collapse was one of the largest in UK corporate history and had far-reaching impact on many of its supply chain, industry partners and clients.

Surprise has been expressed that more stringent action has not been taken or recommended by the FCA, which issued a warning notice proposing public censure.

Unite assistant general secretary Gail Cartmail described it as “astonishing” that none of the senior Carillion managers had been charged over their actions, after the business traded “while insolvent for some time before its collapse”.

“This was not a victimless white-collar crime, thousands of workers lost their jobs,” she said.


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