UK watchdog fines ex-Carillion finance chiefs over misleading statements

Britain's Financial Conduct Authority fined former Carillion finance chiefs Richard Adam (232,800 pounds) and Zafar Khan (138,900 pounds) for issuing misleading statements after they dropped their appeals.

Britain's Financial Conduct Authority announced fines for two former Carillion directors over misleading market statements. The regulator said Richard Adam and Zafar Khan knew about serious problems in the company's UK construction arm but did not disclose them or alert the board and audit committee. Both men were fined after dropping their appeals, and the company collapsed in 2018. Key points: - The FCA reported that Adam and Khan were aware of serious problems in Carillion's UK construction business but failed to disclose those issues in market statements or to the board and audit committee. - The two former finance chiefs dropped their appeals against the FCA's findings and were fined 232,800 pounds (Richard Adam) and 138,900 pounds (Zafar Khan). - Carillion collapsed in 2018; the FCA's action relates to disclosures made before that collapse. Summary: The FCA's action finalizes regulatory penalties for two former finance directors related to Carillion's pre-collapse disclosures. Any further procedural steps were not stated and are undetermined at this time.