Barings bosses face SFA grilling

JOHN EISENHAMMER

Financial Editor

The Securities and Futures Authority is set to interview former executives of Barings, which could result in some being banned from working in the City.

Regulatory sources said the SFA is determined to come down hard on those executives who failed to exercise their responsibilities in the collapsed merchant bank.

The investigation is believed to cover about 12 former executives from Peter Baring, the ex-chairman, and Andrew Tuckey, the ex-deputy chairman, downwards. But the main focus is on those such as Peter Norris, the former head of the securities side, and Ron Baker, formerly in charge of the derivatives operations, who are believed to have been more directly involved in the running of the business.

The Bank of England report into the collapse of Barings under losses of pounds 860m, put the blame firmly on Nick Leeson's unauthorised derivatives speculation in Singapore as well as the seriously inadequate internal management controls. The SFA's task is now to put the personalities to the management breakdown, detailing precisely who was responsible, or should have been responsible, for specific actions and operations.

The executives had to return to the SFA by Tuesday night, a questionnaire, tailored to each individual, which sought to establish precisely what the lines of responsibility and reporting were, or were meant to be, at the old Barings.

The Bank of England report painted a picture of great confusion, with several senior executives claiming they thought each other was looking after particular areas of trading and control. On the basis of the structures revealed in the replies, the SFA is soon to begin talking to the former executives. Of all of them, only Andrew Tuckey is believed still to be working, under some informal arrangement with Barings' corporate finance. All had their registration with the SFA, essential for working in the securities industry in the City, taken away when they were dismissed by ING, the new Dutch owner of Barings. If they re-apply for registration, the SFA has to be convinced they are fit and proper people to work in the securities business.

Start your day with The Independent, sign up for daily news emails
Life and Style
food + drink
Life and Style
love + sex A new study has revealed the average size - but does that leave men outside the 'normal' range being thought of as 'abnormal'?
News
UK Border Control
i100
Arts and Entertainment
TV
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Executive - OTE £40,000

£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...

Austen Lloyd: Law Costs HOD - Southampton

£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...

SThree: Recruitment Resourcer

£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...

Guru Careers: Inbound Sales Executive

£18k + Uncapped Commission (£25k Y1 OTE): Guru Careers: We are seeking an Inbo...

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn