FSA bans former Northern Rock finance director

by Gill Montia

Story link: FSA bans former Northern Rock finance director

The Financial Services Authority (FSA) has fined a former finance director of Northern Rock £320,000 and prohibited him from performing any function in relation to any regulated activity.

In January 2007, David Jones, along with bank’s former deputy chief executive, David Baker, sanctioned the use of false mortgage arrears figures for use in Northern Rock’s 2006 annual accounts.

According to the regulator, reporting the correct figures would have either increased arrears by over 50% or possessions figures by approximately 300%.

Mr Jones then allowed the continued misreporting of arrears and possessions figures to the bank’s assets & liabilities committee, on a monthly basis, and on a quarterly basis to the Council of Mortgage Lenders.

The FSA’s director of enforcement and financial crime, Margaret Cole, says: “Even though other senior directors within the firm were involved in the misreporting of arrears and possessions figures, as a senior director himself and as an FSA authorised person, Jones had a duty to reveal the true position to the public and to important internal committees.”

She adds: “He had numerous opportunities to put things right, but failed to do so.”

Mr Jones’ accomplice, David Barker, was fined and banned by the FSA back in April.