City M.A. and other UK media outlet reported that Metro Bank has been placed on the Financial Conduct Authority’s (FCA) watchlist for financial crime compliance, a development that adds to the bank’s challenges as it seeks to recover after a major refinancing deal. The bank confirmed its inclusion on the list in June, with the FCA scrutinizing its management of financial crime risks and the effectiveness of its online account controls.
Established in 2010 as the first new high street bank in the UK in over 150 years, Metro Bank is listed on the London Stock Exchange. The FCA’s watchlist targets companies posing significant risks to its objectives, subjecting them to intense supervision. This news emerged as Metro Bank promoted a rescue deal in a 200-page prospectus, first reported by The Sunday Times.
The deal includes a £325 million capital raise led by Spaldy Investments and £600 million in debt refinancing, potentially increasing Colombian billionaire Jaime Gilinski‘s stake to 52.9%. The bank has warned of potential alternative measures from the Bank of England if shareholders reject the plan. An investigation into Metro’s financial crime systems has been ongoing, with the bank fully cooperating with the FCA.
However, the outcomes and financial impacts of these inquiries are currently uncertain. Metro Bank has not set aside funds for potential penalties related to this issue. This comes after a £10 million fine imposed by the FCA in December for publishing incorrect information in 2018.
