Primary Markets enforcement outcomes

Metro Bank published incorrect information concerning its Risk Weighted Assets (RWA) figure in its third quarter trading update (the October Announcement) on 24 October 2018.

It was aware at the time that this figure was wrong and failed to qualify it or explain in the October Announcement that it was subject to an ongoing review and would require a substantial correction.

Metro Bank also failed to consider, and to seek legal advice on, whether the incorrect RWA figure ought to be qualified or explained in the October Announcement.

As a result, Metro Bank failed to take reasonable care to ensure that the October Announcement was not false and misleading and did not omit relevant information. 

We fined Metro Bank PLC £10 million. 

Sir Christopher disclosed inside information to individuals in senior positions at two of ConvaTec Group Plc’s (ConvaTec) major shareholders before this information had been announced properly to the market.

The disclosures concerned an expected announcement by ConvaTec relating to a revision of its financial guidance and the CEO’s plans for retirement. 

We fined Sir Christopher £80,000.  

Carillion recklessly published announcements on 7 December 2016, 1 March 2017 and 3 May 2017 that were misleading and did not accurately or fully disclose the true financial performance of Carillion.

Those announcements made misleadingly positive statements about Carillion’s financial performance generally and in relation to its UK construction business in particular.

We issued Carillion with a public censure given it was insolvent and in liquidation. 

Following our action against Redcentric PLC in June 2020. 

Mr Coleman was found guilty of making false and misleading statements to the market and of false accounting. Mr Coleman had inflated the cash position that was presented to the Redcentric Board, and had used the same false figures to assure key investors about Redcentric’s financial position, persuading them not to sell down their investment in the company. 

Mr Coleman was sentenced to five and a half years’ imprisonment, as well as being disqualified from being director for ten years.

Ms Croft was sentenced to three years’ imprisonment for false statements and false accounting. 

Aviva made an announcement about the treatment of some of its preference shares. This announcement was reasonably capable of giving the impression that Aviva intended to take action to cancel them at par value. Aviva had made the announcement when it had, in fact, formed no intention to cancel the preference shares in question. The impression given by the announcement was not accurate. Aviva later clarified its intentions in a further regulatory announcement.

We censured Aviva plc for making an announcement that had the potential to mislead the market, noting this was serious but not intentional. We also took note of the payment scheme for affected preference shareholders in coming to this decision.

The firm failed to notify us and disclose to the public its net short position in Premier Oil Plc built between February 2017 and July 2019.

It was fined £873,118 over transparency failures.

Mr Foley, the ex-CEO of WorldSpreads Limited (WSL), and its holding company WorldSpreads Group plc (WSG), was involved in drafting admission documentation ahead of WSG’s flotation on AIM. These documents contained misleading information and omitted key information that investors would have needed to make an informed decision about the company.

We imposed a public censure on Mr Foley, in lieu of a financial penalty taking account of his financial hardship, for engaging in market abuse (dissemination, manipulating transactions and false or misleading impressions).

Redcentric issued unaudited interim results and audited final year results which materially misstated its net debt position and overstated its true asset position in circumstances where it knew, or ought to have known, that the information was false and misleading. As a result, investors were misled and paid more when purchasing shares than they would have done had they known the true position. 

Redcentric has agreed to offer compensation to affected investors who purchased Redcentric shares between 9 November 2015 and 7 November 2016.

Mr Gorman sold shares as a person discharging managerial responsibility (PDMR) at Braemar Plc.

Under the Market Abuse Regulation (MAR), persons who are PDMRs are required to notify us and the company of every transaction conducted on their own account above a certain threshold within 3 business days.

We imposed a financial penalty of £45,000 on Mr Gorman for failure to notify the transactions under MAR.