FCA and PRA confirm they will investigate former HBOS senior managers

Emma Haslett
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A 500-page report published last year recommended regulators reassess their decision not to investigate former HBOS managers (Source: Getty)

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have confirmed they will start investigations into "certain former HBOS senior managers", after the bank collapsed in 2008.

The news comes just over two months after a landmark report recommended the regulators re-assess their decision not to launch criminal proceedings against former HBOS bosses, including former chief executives Andy Hornby and James Crosby, as well as chairman Lord Stevenson.

So far, Peter Cummings, head of the corporate arm of HBOS at the time of its collapse in 2008, is the only person to have faced sanctions from regulators.

In a statement today, the two regulators said the investigations "will determine whether or not any prohibition proceedings should be commenced against [some senior managers at HBOS].

"The FCA and PRA continue to review materials with a view to making further decisions regarding other former HBOS senior managers."

Last year's report, by Andrew Green QC, suggested Hornby and Lord Stevenson should have been investigated more broadly by then-regulator the Financial Services Authority, after Lloyds TSB was forced to come to its rescue at the beginning of the financial crisis in 2008.

Last week another regulator, the Financial Reporting Council (FRC), said it will launch an investigation into KPMG's handling of HBOS' accounts in the run-up to its collapse. KPMG controversially granted the bank "going concern" status in 2007, the year before it was rescued by Lloyds.

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