Why were Richard Adam and Zafar Khan fined by the FCA?

They were fined for knowing about serious problems at Carillion and failing to alert investors and the board before the company's collapse.

What was the impact of Carillion's collapse?

Carillion collapsed with £7bn in debts, causing 3,000 job losses and disrupting 450 public projects, including hospitals and roads.

Has KPMG faced penalties related to Carillion?

Yes, KPMG was fined £21m in 2023 for significant failures in its audits of Carillion between 2013 and 2017.

Home / Business and Economy / UK Fines Ex-Carillion Directors for Misleading Market

UK Fines Ex-Carillion Directors for Misleading Market

7 Jan

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Summary

Two former Carillion executives fined for misleading investors.
Carillion collapsed in January 2018 with £7bn in debts.
Fines follow KPMG's £21m penalty for audit failures.

UK Fines Ex-Carillion Directors for Misleading Market

The UK's Financial Conduct Authority (FCA) has imposed significant fines on two former executives of the defunct government contractor Carillion. Richard Adam and Zafar Khan have been fined £232,800 and £138,900 respectively, after dropping their appeals against the FCA's findings. The regulator determined that both individuals were aware of severe issues within the business but failed to disclose this information to investors, the board, or the audit committee.

Carillion, once a major construction and facilities management company, entered liquidation in January 2018. Its demise left approximately £7bn in debts, leading to 3,000 job losses and widespread disruption across 450 projects, including vital public services and infrastructure. The company's collapse also caused significant financial overruns on major projects such as the Royal Liverpool and Midland Metropolitan hospitals.