- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Neil Hodge2022-09-28T12:00:00
The United Kingdom doesn’t have a strong track record for bringing executives to book. Very often, boardroom culprits have usually fallen on their swords, taken their pensions, and sometimes even moved to greener pastures long before any regulator comes knocking.
The latest nonenforcement notice occurred Aug. 26, when the U.K.’s main financial regulators—the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA)—ended their six-year investigations into former senior managers at HBOS and announced they would take no further action against the individuals for their role in the bank’s financial failure in 2008.
During the probes, the regulators said they gathered more than two million documents, conducted interviews, and pored through reams of contemporaneous evidence as part of their “forensic” and “rigorous” investigations to assess whether these senior managers failed in their roles and responsibilities. The result called for no enforcement action.
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Legal experts generally agree the U.K.’s record for prosecuting board-level executives for financial and economic crime could be better. But some believe there is a problem criticizing poor enforcement when the legislation in place has its own shortcomings.
The Serious Fraud Office secured the convictions of two executives at failed British steel trading business Balli Steel on six counts of fraud. Legal experts examine whether “record-breaking” international cooperation in the case served as a crutch for the U.K. regulator.
The “Edinburgh Reforms” aim to establish a smarter regulatory framework for the United Kingdom that is agile, less costly, and more responsive to emerging trends. Experts weigh in on the proposed changes.
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
