The Financial Conduct Authority has fined former Carillion plc finance directors Richard Adam and Zafar Khan for their part in misleading statements issued by the company, after both withdrew their challenges to the FCA’s decision. The FCA concluded that the pair were aware of serious financial troubles in Carillion’s UK construction business but failed to reflect this in market announcements or alert the Board and audit committee, contributing to poor oversight. Mr Adam and Mr Khan were responsible for Carillion’s procedures, systems and controls relating to financial reporting, which the FCA found were insufficient to ensure contract accounting judgments in the UK construction business were made, recorded and reported appropriately. The FCA found both acted recklessly and were knowingly concerned in Carillion’s breaches of Article 15 of the Market Abuse Regulation and multiple Listing Rules and principles, including requirements to avoid misleading information, maintain adequate controls, and act with integrity toward holders and potential holders of its premium listed shares. The FCA noted that the findings in the Final Notices are not the subject of any judicial finding. A related Decision Notice issued to Carillion’s former chief executive officer Richard Howson is disputed by him, and his statutory reference to the Upper Tribunal is scheduled to be heard from 16 February 2026.

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