Former Bradford & Bingley group finance director Chris Willford is potentially facing a £100,000 fine from the Financial Conduct Authority (FCA) after losing in the Court of Appeal yesterday.
Willford’s identity had previously remained secret throughout the dispute but these restrictions have now been lifted as a result of the court’s decision.
The regulator’s predecessor, the Financial Services Authority (FSA), originally determined in October 2010 that Willford should be subject to the penalty for failing to exercise due skill, care and diligence in early 2008.
This decision notice against Willford was overturned in May 2012 when he brought a judicial review against the FSA’s regulatory decisions committee, arguing that it had failed to give adequate reasons for its decision against him.
Lord Justice Moore-Bick yesterday judged the regulator to have given sufficient reasons to understand the basis of its decision.
Bradford & Bingley’s board of directors made plans in May 2008 to launch a rights issue in a bid to raise capital, following the release of an interim management statement in April which included figures for mortgage impairment.
The FSA argued Willford, in his capacity as group finance director, failed to ensure the finance department brought potentially important financial information to his personal attention promptly and did not make enquiries about information which might have been relevant to the rights issue.
He is also said to have failed properly to review the draft April financial results pack when it was issued on 16 May.
In June 2008 the bank was forced to issue an updated trading statement which amounted to a profits warning. As a result the rights issue had to be significantly restructured and is said to have been largely unsuccessful.
Willford is still free to challenge the fine in the Upper Tribunal.
Bradford & Bingley was nationalised September 2008 after the savings division was sold to Santander for £612m.
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