Close Brothers appoints new CEO amid industry-specific challenges

The British bank Close Brothers has appointed Mike Morgan as the new Group CEO following Adrian Sainsbury's resignation from his position. Sainsbury left the company after a medical leave. He had joined Close Brothers in 2006 and assumed the role of Chief Executive in early 2020. His resignation became official on January 6. Sainsbury originally led Close Brothers' trading division and had served as a director of the banking subsidiary since 2013 before rising to CEO. During his medical absence, which began in September, the company described his condition as temporary and expected a full recovery. Against the backdrop of growing regulatory uncertainties, Close Brothers, along with other lenders, is preparing for potential compensation claims of up to 30 billion pounds. This is in connection with a pending decision by the UK Supreme Court on undisclosed commission agreements in car financing. This decision could confirm an earlier landmark judgment. Close Brothers Chairman Mike Biggs emphasized his confidence in Morgan's leadership skills, highlighting his deep knowledge within the organization. He is confident that Morgan will ensure continuity and strategic direction. This appointment comes at a crucial time, as the bank operates in an environment marked by legal and regulatory challenges that are set to fundamentally change the industry.