Former-Northern Rock director banned and fined £320,000

28 July 2010

An ex-finance director of Northern Rock has been banned from working within financial regulation and fined £320,000 after inaccurately reporting figures surrounding mortgage arrears.

According to the regulator, David Jones colluded with David Baker, the former deputy chief executive officer at Northern Rock, to provide incorrect figures as part of the financial institution’s annual accounts for 2006.

Mr Jones presented false figures for possessions and arrears to Northern Rock’s assets & liabilities committee and the Council of Mortgage Lenders during the year he was in the post, the FSA explained.

The industry regulator stated that reporting correct figures could have led to data surrounding possessions increasing by 300 per cent and those for arrears by more than 50 per cent.

Margaret Cole, FSA director of enforcement and financial crime, said: "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.

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

Previously, the FSA handed out fines and bans to David Baker and Richard Barclay, the former credit director at Northern Rock.

By Jim Ottewill

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