Metro Bank has been fined £10mln by the Financial Conduct Authority for publishing incorrect information to investors and breaching listing rules.
In a third-quarter trading update in October 2018 the group’s Risk Weighted Assets (RWA) were stated incorrectly, the FCA said.
The challenger bank was aware at the time of publication that the figure was wrong and failed to qualify or explain that it was subject to an ongoing review, which might have required a correction.
Additionally, the bank failed to take reasonable care to ensure the figure was not false or misleading by not seeking legal advice.
Craig Donaldson, former chief executive, and former chief financial officer David Arden were fined £223,100 and £134,600 respectively for “being knowingly concerned in Metro Bank’s breach”.
Donaldson and Arden have referred the issue to the upper tribunal, though the bank has decided not to refer the FCA’s findings further.
“Listed firms must ensure that the information they are disclosing to the market is right. This is what investors are entitled to receive,” said Mark Steward, executive director of enforcement and market oversight.
“The UK’s Listing Rules impose high standards on issuers and their officers which Metro Bank, Mr Donaldson and Mr Arden failed to meet in this case.”
Shares in Metro Bank rose 4.7% to 111p.