Statement on the Financial Conduct Authority’s enforcement investigation into issues relating to HBOS Reading

This resumes an FCA investigation that was placed on hold in early 2013 at the request of Thames Valley Police pending the outcome of the Thames Valley police investigation and any resulting prosecutions. The FCA’s investigation is focussing on the extent and nature of the knowledge of these matters within HBOS and its communications with the Financial Services Authority after the initial discovery of the misconduct.

This statement is made given the public interest in these matters.

Notes to editors

1. Op Hornet the Thames Valley Police investigation[1]: Six people were jailed for a total of 47 years and nine months following a six year Thames Valley Police investigation into a complex multi-million pound corruption and fraud case involving HBOS bank employees and private business advisors dating back more than a decade. Five people, four men and a woman, were found guilty at Southwark Crown Court of corruption, fraudulent trading and money-laundering offences. The fraud resulted in the offenders profiting from hundreds of millions of pounds at the expense of businesses and a high street bank and its customers.
2. The FCA’s policy on announcing or confirming the commencement of investigations is set out in the Enforcement Guide (Chapter 6)[2].
3. On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
4. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
5. Find out more information about the FCA[3].