You are here: Home - Investing -

FSA bans and fines former HBOS executive £500k

0
Written by:
13/09/2012
The Financial Services Authority (FSA) has banned former HBOS executive Peter Cummings and fined him £500,000 for failings within the company's corporate division.

It said that, between January 2006 and March 2008, Cummings failed to exercise due skill, care and diligence by pursuing an aggressive expansion strategy within the corporate division, without suitable controls in place to manage the associated risks.

In his role as executive director of HBOS plc and chief executive of its corporate division, he also failed to ensure that the department adequately and prudently managed high value transactions which showed signs of stress.

Tracey McDermott, director of enforcement and financial crime at the FSA, said: “Despite being aware of the weaknesses in his division and growing problems in the economy, Cummings presided over a culture of aggressive growth without the controls in place to manage the risks associated with that strategy.

“Instead of reacting to the worsening environment, he raised his targets as other banks pulled out of the same markets.

“It is essential that senior executives understand that incentivising revenue over risk is a dangerous folly.”

Despite the ban and fine, the FSA accepted he did make efforts to improve the situation and that he did not act deliberately or recklessly to breach regulations.

It also noted that the full severity of the global financial crisis, and its effects, were “not reasonably foreseeable” during the early part of the time period reviewed.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2205299-tax-pound
Tory peer Flight calls for capital gains tax cut

A Conservative peer has urged the coalition to cut capital gains tax (CGT), arguing it discourages savings and investment and...

Close