The FRC has fined two former finance directors of Carillion plc. It found that, as qualified accountants, they acted recklessly and failed to act with integrity in preparing accounting information for Carillion’s financial statements prior to the company’s collapse in 2018 (see our blog post here for more detail on the background).
Richard Adam and Zafar Khan, who have already been fined by the Financial Conduct Authority (FCA), were fined £550,000 and £225,000 respectively by the FRC, with those amounts then reduced to take account of the FCA fines. They have also been excluded from the Institute of Chartered Accountants in England and Wales for 15 and 10 years respectively.
Three other senior accountants who worked at the company, who have not been named, have also been fined, reprimanded and excluded from their relevant recognised supervisory body for between two and eight years.
There were no findings of dishonesty but all the individuals concerned admitted acting recklessly and failing to act with integrity.
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