Close Brothers Names Mike Morgan as New CEO Amid Ongoing Challenges

Close Brothers Group Plc has announced the appointment of Mike Morgan as its new Chief Executive Officer, following Adrian Sainsbury’s decision to step down to focus on his health. The London-based financial services company confirmed that Sainsbury, who had earlier taken a temporary medical leave, is recovering well and is expected to make a full recovery.

The leadership change occurs as Close Brothers, along with other motor finance firms, faces scrutiny from a regulatory investigation into commission practices within the sector. The probe focuses on arrangements that previously enabled car dealers to earn significant commissions while allowing banks to inflate interest rates for customers—a practice banned in 2021. Adding to the challenges, the UK Supreme Court has agreed to hear an appeal from Close Brothers in a pivotal lawsuit related to these practices.

Mike Morgan, who has served as the company’s finance director since 2018, steps into the CEO role at a critical juncture. At 59, he is tasked with navigating the ongoing regulatory and legal issues, including a significant liability tied to the motor finance controversy. Analysts at Keefe, Bruyette & Woods recently raised their estimate of the company’s potential exposure from £350 million to £460 million, underscoring the magnitude of the situation.

Close Brothers’ transition in leadership signals a focus on steadying the company as it works through these challenges, while Sainsbury prioritizes his recovery.

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