Primary Markets enforcement outcomes

We make primary markets work well by monitoring market disclosures to ensure issuers and other market participants comply with the UK disclosure regime. Where they are not complying, we take action.

When we suspect there has been a serious failing, we use our enforcement powers to deter others from engaging in similar conduct.

See below for a list of recent enforcement outcomes.

Information on this page was last updated in 2023.

Date Issuer/subject Enforcement outcome
December 2022 Metro Bank PLC

Metro Bank published incorrect information concerning its Risk Weighted Assets (RWA) figure in its third quarter trading update (the October Announcement) on 24 October 2018.

It was aware at the time that this figure was wrong and failed to qualify it or explain in the October Announcement that it was subject to an ongoing review and would require a substantial correction.

Metro Bank also failed to consider, and to seek legal advice on, whether the incorrect RWA figure ought to be qualified or explained in the October Announcement.

As a result, Metro Bank failed to take reasonable care to ensure that the October Announcement was not false and misleading and did not omit relevant information. 

We fined Metro Bank PLC £10 million. 

August 2022 Sir Christopher Gent (former non-executive Chairman of ConvaTec Group Plc)  

Sir Christopher disclosed inside information to individuals in senior positions at two of ConvaTec Group Plc’s (ConvaTec) major shareholders before this information had been announced properly to the market.

The disclosures concerned an expected announcement by ConvaTec relating to a revision of its financial guidance and the CEO’s plans for retirement. 

We fined Sir Christopher £80,000.  

July 2022  Carillion plc

Carillion recklessly published announcements on 7 December 2016, 1 March 2017 and 3 May 2017 that were misleading and did not accurately or fully disclose the true financial performance of Carillion.

Those announcements made misleadingly positive statements about Carillion’s financial performance generally and in relation to its UK construction business in particular.

We issued Carillion with a public censure given it was insolvent and in liquidation. 

March 2022 Tim Coleman (former CFO of Redcentric); Estelle Croft (former Finance Director of Redcentric) 

Following our action against Redcentric PLC in June 2020. 

Mr Coleman was found guilty of making false and misleading statements to the market and of false accounting. Mr Coleman had inflated the cash position that was presented to the Redcentric Board, and had used the same false figures to assure key investors about Redcentric’s financial position, persuading them not to sell down their investment in the company. 

Mr Coleman was sentenced to five and a half years’ imprisonment, as well as being disqualified from being director for ten years.

Ms Croft was sentenced to three years’ imprisonment for false statements and false accounting. 

October 2020 Aviva plc

Aviva made an announcement about the treatment of some of its preference shares. This announcement was reasonably capable of giving the impression that Aviva intended to take action to cancel them at par value. Aviva had made the announcement when it had, in fact, formed no intention to cancel the preference shares in question. The impression given by the announcement was not accurate. Aviva later clarified its intentions in a further regulatory announcement.

We censured Aviva plc for making an announcement that had the potential to mislead the market, noting this was serious but not intentional. We also took note of the payment scheme for affected preference shareholders in coming to this decision.

October 2020 Asia Research and Capital Management Ltd

The firm failed to notify us and disclose to the public its net short position in Premier Oil Plc built between February 2017 and July 2019.

It was fined £873,118 over transparency failures.

September 2020 Conor Martin Foley

Mr Foley, the ex-CEO of WorldSpreads Limited (WSL), and its holding company WorldSpreads Group plc (WSG), was involved in drafting admission documentation ahead of WSG’s flotation on AIM. These documents contained misleading information and omitted key information that investors would have needed to make an informed decision about the company.

We imposed a public censure on Mr Foley, in lieu of a financial penalty taking account of his financial hardship, for engaging in market abuse (dissemination, manipulating transactions and false or misleading impressions).

June 2020 Redcentric PLC

Redcentric issued unaudited interim results and audited final year results which materially misstated its net debt position and overstated its true asset position in circumstances where it knew, or ought to have known, that the information was false and misleading. As a result, investors were misled and paid more when purchasing shares than they would have done had they known the true position. 

Redcentric has agreed to offer compensation to affected investors who purchased Redcentric shares between 9 November 2015 and 7 November 2016.

December 2019 Kevin Gorman

Mr Gorman sold shares as a person discharging managerial responsibility (PDMR) at Braemar Plc.

Under the Market Abuse Regulation (MAR), persons who are PDMRs are required to notify us and the company of every transaction conducted on their own account above a certain threshold within 3 business days.

We imposed a financial penalty of £45,000 on Mr Gorman for failure to notify the transactions under MAR.

June 2019 Cathay International Holdings Limited; Mr Jin-Yi Lee; and Mr Eric Siu Cathay’s financial performance deteriorated over the course of 2015 due to various issues in its group. In our view, there were serious procedures, systems and controls failings within the company which meant that Cathay did not monitor the full impact of these issues on its expected financial performance for the year ended 31 December 2015 compared to market expectations.

Page updates

: Information added Updated recent enforcement outcomes
: Editorial amendment page update as part of the website refresh