Former Carillion chief Richard Howson fined £237,000 | Construction Enquirer News
Summary
Richard Howson, former CEO of Carillion, has been fined £237,000 by the FCA for failing to disclose the company's financial troubles prior to its collapse in 2018.
Why It Matters
This case highlights the accountability of corporate leaders in financial disclosures and the implications of their decisions on stakeholders, including employees and investors. The FCA's actions underscore the importance of transparency in the construction industry, especially following significant corporate failures.
Key Takeaways
- Richard Howson was fined for failing to disclose Carillion's financial issues.
- The fine was reduced from £397,800 due to cooperation with the FCA.
- The FCA emphasized the importance of accurate financial reporting for corporate accountability.
- Carillion's collapse had severe repercussions for jobs and public projects.
- Other executives involved also faced fines, indicating a broader accountability.
The fine from the FCA comes after Howson withdrew his challenge to the financial watchdog’s decision after a probe into Carillion’s 2018 collapse He was originally fined £397,800 in 2022 but the fine has been reduced after the FCA said it had overstated his “relevant income” and his co-operation with the investigation. The FCA said: “As group chief executive, Mr Howson was aware of serious financial troubles in Carillion’s UK construction business. He failed to reflect this in company announcements or alert its board and audit committee, leading to poor oversight.” It added: “Mr Howson played an important role as the Board member with the most expertise on construction and contracting matters.” The FCA found that Mr Howson acted recklessly and was knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules. Steve Smart, executive director of enforcement and market oversight at the FCA, said: “Carillion’s failure was significant. Jobs were lost, public sector projects put at risk and investors, who trusted the company to give them accurate information, suffered large scale losses. That’s why the FCA worked diligently to hold the company and its senior leaders to account.” During the period in question, Carillion’s group finance director was first Richard Adam and then Zafar Khan. They were fined £232,800 and £138,900, respectively, in January 2026.
