Richard Howson pictured at a Carillion select committee in 2019
The Financial Conduct Authority has reduced its fine on former Carillion chief executive Richard Howson after he withdrew his challenge to the punishment imposed for misleading statements he made before the company’s collapse.
Construction News this morning revealed that Howson had abandoned his legal bid to overturn the interim punishment handed to him by the Financial Conduct Authority (FCA) in 2022 over breaches of financial rules.
In a statement released later in the morning, the FCA said it would now be fining Howson £237,700, down from the £397,800 originally proposed.
In its decision notice, it said that it had not imposed the full £397,800 on two grounds:
- it accepted that Howson’s income was £990,763, not £1.33m as originally believed;
- Howson’s “cooperation during the authority’s investigation, as well as other investigations and his statements in sworn evidence in other related proceedings that he would not contest certain allegations made against him”.
Steve Smart, executive director of enforcement and market oversight at the FCA, said: “Carillion’s failure was significant.
“Jobs were lost, public sector projects were put at risk and investors, who trusted the company to give them accurate information, suffered large-scale losses. That’s why the FCA worked diligently to hold the company and its senior leaders to account.”
The news of Howson’s final fine amount comes just over a month since the FCA reduced its fines on two former finance directors at Carillion – Richard Adam and Zafar Khan – after they withdrew their own, separate challenges.
A statement today from the FCA said that primary responsibility for ensuring the financial information disseminated to the market was accurate lay with the group finance director.
“However,” it said, “Mr Howson played an important role as the board member with the most expertise on construction and contracting matters.
“The FCA found that Mr Howson acted recklessly and was knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.”
