Richard Cousins one of senior City figures in the spotlight after HBOS report

19 March 2012 by
Richard Cousins one of senior City figures in the spotlight after HBOS report

Compass Group's chief executive Richard Cousins is among members of the former audit and risk committees for HBOS to be put under the spotlight, following the Financial Services Authority's (FSA) report into "misconduct" at the bank's corporate division.

Billed as HBOS's "third line of defence", group audit had an obligation to ensure the auditors KPMG were fully informed of risks, according to the Telegraph.

But the FSA report found: "The full extent of stress in the corporate portfolio was not visible to group, auditors and regulators … There were issues with the assurance provided by the third line of defence."

Cousins was one of just four members of the risk control committee for the failed corporate division.

Anthony Hobson, who was chairman of the audit committee, is currently chairman of the FTSE 100 technology group Sage. He is also chairman of Glas Cymru's audit committee.

John Ormerod, a member of the HBOS audit committee, is now chairman of audit committees' at ITV, Misys and Computacenter.

Questions were also raised about HBOS's finance directors Phil Hodkinson and Mike Ellis, who were part of the "second line of defence" about which

The FSA also found "significant issues" with the bank's "second line of defence", which raised questions about HBOS's finance directors Phil Hodkinson and Mike Ellis.

The FSA is still considering taking action against former HBOS directors.

Compass sees flat operating profit, but promising contract retention >>

Compass to buy back £500m of shares >>

By Janie Manzoori-Stamford

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