UPDATE 1-Carillion "recklessly" mislead markets before collapse, says UK watchdog

(Adds details and further comments from statement)

By Huw Jones

LONDON, Nov 13 (Reuters) - Collapsed builder Carillion and
some of its executive directors were "reckless" in failing to
ensure that their public announcements did not mislead
investors, Britain's Financial Conduct Authority said on Friday.

Carillion went into liquidiation in January 2018, triggering
Britain's biggest corporate failure in a decade that forced the
government to step in to guarantee public services from school
meals to roadworks.

The FCA issued a formal "warning notice" on Friday to
Carillion and certain former executive directors that it did not
name, setting out alleged breaches of securities rules.

"They made misleadingly positive statements about
Carillion's financial performance generally and in relation to
its UK construction business in particular, which did not
reflect significant deteriorations in the expected financial
performance of that business and the increasing financial risks
associated with it," the FCA said.

The parties have a right to challenge the FCA's findings at
an independent committee that will decide if sanctions are
warranted. They can then appeal any decision at an Upper
Tribunal.

The FCA said that between July 2016 and July 2017 Carillion
breached several listing and market abuse rules aimed at
stopping the dissemination of information that gives false or
misleading signals as to the value of the company's shares.

It said the relevant executive directors were knowingly
involved in the above breaches by Carillion and each was aware
of the deteriorating expected financial performance within the
UK construction business.

"The FCA considers that Carillion and the relevant executive
directors acted recklessly in relation to the above matters."
(Reporting by Huw Jones; editing by David Evans)

Carillion Plc