U.K.’s PRA Tells Standard Chartered to Hand Risk to CEOHoward Mustoe and Ben Moshinsky
Standard Chartered Plc transferred responsibility for risk to Chief Executive Officer Peter Sands from Finance Director Richard Meddings at the request of British regulators, according to a person with knowledge of the matter.
The central bank’s Prudential Regulation Authority didn’t want Meddings, 55, who oversees financial duties including treasury and strategy, to also manage the bank’s risk controls, said the person, who asked not to be identified because the matter is private. London-based Standard Chartered said Sands, 51, would take over risk, in a statement on Nov. 29.
“We want to make sure we are well placed to meet future regulatory requirements,” Sarah Lindgreen, a Standard Chartered spokeswoman, said by telephone today. She declined to comment on the lender’s conversations with regulators. Officials at the PRA declined to comment.
U.K. banks have been promoting risk officers to more senior positions in the wake of the financial crisis after their concerns of reckless lending went unheeded. Paul Moore, HBOS Plc’s former head of risk, said he was fired by the U.K. mortgage lender that was bailed out in 2008 for his warnings about inappropriate sales of insurance and bond products.
Last month, Standard Chartered’s Asia-focused competitor HSBC Holdings Plc said its chief risk officer, Marc Moses, would join CEO Stuart Gulliver and Finance Director Iain Mackay on the lender’s board. Chief Risk Officer Richard Goulding continues to oversee risk at Standard Chartered on a day-to-day basis, said the Daily Telegraph, which reported the story earlier.
Standard Chartered shares closed at 1,306 pence in London, up 0.6 percent. They have dropped 17 percent this year.
The company in June appointed two new non-executive directors and a senior independent director as part of succession planning and to “enhance the experience, depth and diversity” of the board, it said.
The hirings came after Temasek Holdings Pte, the Singapore investment firm and the bank’s biggest shareholder, raised governance concerns at the bank and pressed it to hire more independent directors, a person with knowledge of the matter said in October 2012.
-- Editors: Jon Menon, Steve Bailey