Former Carillion directors handed reduced fines

The reduced fines were imposed after they both withdrew their challenges to the FCA’s decision.

Adam was finance director of Carillion from April 2007 to December 2016, while Khan held the role from January 2017 to September 2017. 

As finance directors, the pair had responsibility for Carillion’s procedures, systems and controls relating to financial reporting. These were not sufficient to ensure that contract accounting judgments made in its UK construction business were made, recorded and reported appropriately, the FCA said.

The watchdog found both acted recklessly and were knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.

At the time of its collapse in 2018, Carillion held approximately 450 construction and service contracts in the public sector and employed more than 43,000 people, including 18,000 in the UK.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Those in positions of responsibility have a duty to keep the market accurately and adequately informed. With Carillion, we have seen the serious impact it can have when they don’t. 

“The action taken against Mr Adam and Mr Khan demonstrates our commitment to preventing market abuse and upholding the standards we expect.”