FCA unable to fine HBOS execs

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The FCA has confirmed it will not be able to issue fines to any former executives at HBOS, regardless of the conclusions of the report into its collapse to be published this week.

The report is expected to include a lengthy examination of why only one HBOS director, Peter Cummings, was fined in the aftermath of the bank’s failure.

However, the FCA says because HBOS fell apart so long ago, it will fall outside of a six year statute of limitations on fines.

The regulator is able to bar the directors of the bank from participating in the financial services sector.

None of the three former HBOS bosses expected to be named in the report still hold an active registration for controlled functions, according to the FCA register.

Former HBOS chairman Lord Stevenson has not held an approved role since 2012, when he stepped down as a non-executive director at Loudwater Investment Partners.

Similarly, former chief executive Andy Hornby has not held an approved position since 2009, when he stepped down from the bank, while his predecessor Sir James Crosby has not held an FCA approved role since leaving the bank in 2006.

The trio were accused of “a colossal failure of management” in a 2013 report by the Parliamentary Commission on Banking Standards.

The publication of the report was delayed until after the election to allow for Maxwellisation, a process through which those criticised in reports are allowed to respond prior to publication.

Meanwhile, Sky News reports that the investigation into the failings at HBOS will find that the bank’s executive put pressure on auditors to approve sums on its financial health.

Executives at the bank reportedly asked KPMG to approve their internal analyses of the bank’s impairment charges, despite the external firm holding a more pessimistic view.