Richard Howson fined for role in misleading announcements before Carillion collapse
The Financial Conduct Authority has fined Richard Howson £237,700 for his part in misleading statements issued by Carillion plc.
The regulator found that, while serving as group chief executive, Mr Howson was aware of serious financial difficulties within Carillion’s UK construction division. Despite this knowledge, he failed to ensure that the company’s public announcements reflected those problems. He also did not alert the board or its audit committee, which the FCA said led to inadequate oversight.
The penalty follows Mr. Howson’s decision to withdraw his challenge to the FCA’s findings.
Mr Howson was one of two executive directors on Carillion’s board. His responsibilities included working closely with the group finance director to ensure that communications with investors were accurate and that internal control processes were appropriate. Although primary responsibility for the accuracy of financial information rested with the finance director, the FCA determined that Mr. Howson played an important role as the board member with the greatest expertise in construction and contracting matters.
The FCA concluded that Mr Howson acted recklessly and was knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules during the period from 1 July 2016 to 10 July 2017.
Specifically, he was found knowingly concerned in breaches of Article 15 of the Market Abuse Regulation, which prohibits the dissemination of information that gives false or misleading signals as to the value of shares where a person ought to have known the information was inaccurate. He was also found knowingly concerned in breaches of Listing Rule 1.3.3R, which requires reasonable care to ensure announcements are not misleading, false or deceptive and do not omit material information. Further breaches related to Listing Principle 1 concerning adequate procedures, systems, and controls, and Premium Listing Principle 2 requiring integrity towards holders and potential holders of premium listed shares.
Mr. Howson served as chief executive of Carillion from 1 January 2012 until 10 July 2017. He received an initial Decision Notice dated 24 June 2022.
During the relevant period, Carillion’s group finance director was first Richard Adam and then Zafar Khan. In January 2026, the FCA fined Mr. Adam £232,800 and Mr. Khan £138,900.
Steve Smart, executive director of enforcement and market oversight at the FCA, said Carillion’s failure led to job losses, risks to public sector projects, and significant losses for investors who relied on the company’s disclosures. He stated that the FCA had worked to hold both the company and its senior leaders to account.
Carillion plc is now in liquidation.