Richard Adam and Zafar Khan have been fined £232,800 and £138,900 respectively by the Financial Conduct Authority, for their part in misleading statements being issued by Carillion plc.
The FCA said both former financial directors were aware of serious financial troubles in the construction business but failed to reflect this in company announcements or alert the Board and audit committee, leading to poor oversight.
Both were also deemed to have acted recklessly.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Those in positions of responsibility have a duty to keep the market accurately and adequately informed. With Carillion, we have seen the serious impact it can have when they don’t. The action taken against Mr Adam and Mr Khan demonstrates our commitment to preventing market abuse and upholding the standards we expect.”
