The Prudential Regulation Authority has fined George Jay Hambro, a former notified non-executive director of failed Wyelands Bank, £72,000 for breaching its conduct rules.
Wyelands Bank launched 1980 and in 2016 became part of the Gupta Family Group (GFG) Alliance - owned by Sanjeev Gupta, the boss of Liberty Steel. The Bank began winding down in March 2020 after the PRA found significant regulatory failings.
The PRA says Hambro's conduct between 2017 and 2020 "fell below the standards expected of a person in his position in an authorised firm and demonstrated a serious lack of due skill, care and diligence" in relation to: the recognition of capital, large exposures assessments, and Wyelands’ internal policy to manage potential risks of conflicts of interest between Wyelands and the wider GFG Alliance (GFG).
The PRA says Hambro failed to make inquiries as to the appropriateness of the funding mechanism in relation to a £10 million capital injection into Wyelands, which was indirectly funded from the proceeds of a loan Wyelands had made to a third party.
He also failed to make sufficient inquiries as to the date of a GFG executive’s resignation as a director of a GFG entity. Hambro understood the resignation date was relevant to Wyelands’ and the PRA’s assessments as to whether Wyelands was in breach of the large exposures limit applicable to it.
In addition, the PRA says Hambro failed to take steps to ensure the Wyelands’ Engagement Policy was complied with when he was involved in proposing transactions or potential transactions as between Wyelands and GFG members or business associates of GFG.
Today’s announcement follows on from the PRA’s decisions in April 2023 to publicly censure Wyelands for significant regulatory failings and in January 2024 to fine former Wyelands CEO, Iain Hunter, £118,808 for breaching three PRA conduct rules.
Wyelands entered wind down in March 2020, subsequently repaid its unconnected depositors at the direction of the PRA and surrendered its PRA authorisation in April 2024.
Last week, PwC was fined £2.9m by the Financial Reporting Council for “serious failings” in its audit of Wyelands Bank.
Sam Woods, deputy governor for prudential regulation and CEO of the PRA, said: "We have taken this action against Mr Hambro because his breaches and failings contributed to creating prudential risks which threatened the safety and soundness of Wyelands Bank."
In a statement, Hambro said: “I apologise to the regulator. I had never been the director of a PRA regulated entity prior to my appointment and now accept that I should have showed a greater level of assiduousness as a non-executive director.
“I accept the findings of the PRA and have agreed to settle this matter. I would like to thank the PRA for its helpful feedback – working with them on this comprehensive four-year review of over four years of non-executive work at Wyelands has taught me a great deal that is valuable and will inform whatever I do in the future. I think we can all learn a great deal from this process and I am pleased to conclude it constructively with this settlement.”
