STANDARD Chartered finance chief Richard Meddings has been stripped of his role overseeing the firm’s risk division following pressure from the Bank of England.
The lender was forced to hand over responsibility for risk to chief executive Peter Sands after the Prudential Regulation Authority (PRA), the central bank’s financial watchdog, expressed concerns over Meddings holding two conflicting roles, a person familiar with the matter told City A.M last night.
The Bank’s decision may weaken Meddings’ position on the board where he is a strong ally of Sands. Chairman Sir John Peace, who is in the process of strengthening the board overall, could come under pressure to move more urgently after the regulator’s intervention.
Standard Chartered's standing within the investment community has taken a dip recently, with its profits warning earlier this month leading to talk that the bank might need a rights issue at some point next year unless trading improves.
The bank has been hit by a slowdown in emerging markets, with particular pain felt in South Korea.
The move also comes a year after Standard Chartered was forced to pay $670m (£411m) to US regulators to settle charges that it breached sanctions with Iran.
The firm had told the market of the change in responsibility for risk last month, but the statement was brief and did not make any reference to the PRA.