Craig Donaldson says FCA ruling over £900m error destroyed career, finances and employability.

The former chief executive of Metro Bank claims he’s become “untouchable” in the financial world after the UK’s Financial Conduct Authority (FCA) sanctioned him over a £900m loan classification scandal.

Craig Donaldson, who stepped down in 2019, is now challenging the FCA’s 2022 ruling in an upper tribunal in London, where he argues the regulator’s accusations have not only derailed his career but also impacted his personal life and financial stability.

The FCA fined Donaldson £223,100, accusing him of allowing the bank to mislead investors by publishing inaccurate information in 2018. Specifically, it alleged that Metro Bank wrongly classified £900m worth of loans as low-risk, severely misjudging the capital needed to cover potential defaults.

The fallout was dramatic. The bank’s shares plummeted by nearly 40%, triggering panic among customers. Business clients withdrew £235m, and Metro Bank branches saw long queues as customers rushed to pull their money and empty safety deposit boxes. Donaldson resigned soon after.

But the 52-year-old former CEO denies knowingly misleading the market. In his testimony, he said neither he nor the bank realised the scale of the problem when the financial data was published.

“It is simply not correct, as the FCA alleges, that both the bank and I were aware at the time that the size of any adjustment would be substantial,” he stated.

Donaldson also described the personal cost of the regulator’s actions, claiming he’s been repeatedly passed over for permanent jobs and has only managed to secure temporary, lower-paid work.

“I … should be at the peak of my earning capacity,” he said. “Instead, I have been unable to find a permanent role. I have been informed on many occasions that the innuendo and the fear of the FCA’s likely approach to me holding a senior, authorised position has effectively made me untouchable.”

He added that recruiters have advised him to leave the UK altogether. “I’ve been told to move to Australia or seek work outside the regulated financial sector,” he said.

Beyond his career, Donaldson said even basic financial activities have become difficult. “Opening bank accounts, buying insurance, applying for credit cards – all of these have been negatively impacted. Some firms have refused services outright after asking about the FCA ruling,” he explained.

He insists Metro Bank followed legal advice during the period in question and that both the board and the Prudential Regulation Authority (PRA) were kept informed of challenges in assessing loan book risk.

“The Bank of England’s PRA was aware we were struggling to calculate risk, and we were in regular communication with them,” Donaldson said.

He also criticised the FCA’s lack of oversight during a crucial growth period for Metro Bank, which at the time had become the UK’s seventh-largest lender.

“We repeatedly requested a dedicated FCA supervision team. We were told they were too busy. Instead, our contact was routed through the FCA’s call centre,” he told the tribunal.

Donaldson believes the FCA’s sanctions go far beyond what’s fair for what the regulator itself described as misconduct “at the lower end of the scale of seriousness.”

Neither the FCA nor Donaldson’s legal representatives have issued public comments during the tribunal proceedings, which continue this week.