FCA claims that the bank knew of the incorrect submission, but didn’t offer any explanations in the quarterly update.
The FCA stated that:
Metro Bank also failed, and did not seek legal advice, to determine if the incorrect RWA number should be clarified or qualified in its October Announcement. Metro Bank didn’t take reasonable precautions to ensure that the October Anouncement wasn’t false or misleading, and did not miss any relevant information.
The correct RWA figure was announced in January 2019 by the bank and resulted in a 39% fall in Metro Bank’s share price.
According to the FCA Donaldson and Arden knew that the October quarterly update’s incorrect RWA number was inaccurate and would need significant correction. Although Metro Bank has accepted the regulator’s decision, the former executives have appealed the regulatory decision to the Upper Tribunal.
Mark Steward, Executive director of Enforcement and Market Oversight said:
Listed companies must ensure that all information disclosed to the market by them is correct. This information is what investors have the right to.
The UK’s Listing Rules impose high standards on issuers and their officers which Metro Bank, Mr…