The Financial Conduct Authority (FCA) has fined Christopher Willford, the former finance director at Bradford & Bingley (B&B), £30,000 for failing to provide the board with up-to-date information about B&B's financial position, including profits, mortgage arrears and re-possessions, ahead of its 2008 rights issue.
Willford received information that suggested that B&B's financial outlook might be weaker than expected on 16 May 2008 and he failed to raise that with the board to ensure information provided to shareholders about the rights issue on 19 May was correct.
The FCA said Willford’s conduct had not caused the failure of the rights issue, or B&B’s subsequent nationalisation.
The size of the fine reflected the length and timing of the misconduct, which took place over three days during the height of the financial crisis, the FCA said.
This is particularly significant as it suggested B&B could have fallen short of forecast profit for the year, the FCA said.
"As the finance director, Willford was responsible for escalating and investigating these issues and ensuring material provided to shareholders on B&B's financial position was correct," it said.
Willford was B&B's finance director between October 2005 and June 2009.
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