Northern Rock Investigating Directors

Northern Rock Investigating Directors

Northern Rock has announced it is conducting a formal investigation into the conduct of its previous directors.  They have revealed that its legal advisers, Freshfields, were conducting the review, which would examine the actions and decisions of members of the board, including former chief executive Adam Applegarth, in the build up to its near collapse last year.  

Our view

All financial services companies should investigate the conduct of staff when there is a problem.  In Ireland, they have a system where independent actuaries sign off financial stability, in Luxembourg they separate all policyholder assets away from the business to protect from insolvency, in the UK we let Directors tell the regulator whatever they choose to report.

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