Close Brothers CEO Adrian Sainsbury Takes Medical Leave

Close Brothers has announced that its chief executive, Adrian Sainsbury, is on medical leave, with no specified return date. Sainsbury has been with the company for over a decade, having joined in 2013 and becoming CEO in 2020. During his tenure, he has held various senior roles in banking, including positions at the Australia and New Zealand Banking Group and the Royal Bank of Scotland. In Sainsbury's absence, Mike Morgan, the finance director, will assume his responsibilities, including leading the upcoming full-year results announcement scheduled for September 19. The company's chairman, Mike Biggs, along with other senior management team members, will also support the transition during this period. Despite the leadership change, Close Brothers has reported a significant increase in operating pre-tax profit, which surged by 700% in the first half of the year compared to the same period last year. However, the firm is also preparing for financial challenges, including a £400 million boost to its finances and cost-cutting measures in light of an ongoing investigation into car finance mis-selling practices by the Financial Conduct Authority (FCA). The FCA is examining whether lenders misled customers regarding car finance products through undisclosed commission arrangements. Close Brothers, which operates a motor finance division, has set aside substantial funds to address potential costs arising from this investigation, which is expected to conclude later this year.