FCA issues warning notice to former Carillion executives
UK watchdog the Financial Conduct Authority has issued Carillion and certain previous directors with a warning notice following what it branded as "reckless" behaviour.
The FCA said Carillion had failed to ensure that public announcements did not mislead investors, leading it to propose a public censure.
"They made misleadingly 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," said the FCA.
The FCA also stated Carillion's systems, procedures and controls were not "sufficiently robust" to ensure that contract accounting judgements made in the firm's British construction unit were appropriately made, recorded and reported internally and highlighted that certain directors were aware of the deteriorating financial performance within the unit but failed to make announcements "accurately and fully" reflecting this matters.