Sanctions against Sean Robert Clark in relation to the operations and investment activities of Thurrock Council
News types: Investigations
Published: 8 May 2025
This Press Notice concerns the outcome of an investigation into Mr Sean Clark. It would not be fair to treat any part of this announcement as constituting or evidencing an investigation into, or findings in respect of the conduct of, any other persons or entities.
The Executive Counsel of the Financial Reporting Council (FRC) has agreed terms of settlement with Sean Robert Clark, following his admission of Misconduct, in relation to his role in the operations and investment activities of Thurrock Council for the financial years ended 31 March 2018 to 31 March 2022.
Mr Clark was the Chief Financial Officer (CFO) of Thurrock Council during the relevant period and was responsible for the administration of the Council’s financial affairs*.
The following sanctions were imposed on Mr Clark as part of the settlement:
- Exclusion as a Member of the Association of Chartered Certified Accountants (ACCA) for a recommended period of 5 years**; and
- A Severe Reprimand.
In October 2017 Thurrock Council formally approved an Investment and Treasury Management Strategy document which set out an approach for borrowing on a short-term basis, primarily from other local authorities, and using the funds to make longer-term commercial investments (a “debt for yield approach”). Under this approach, short-term borrowing and investments eventually exceeded £1 billion, more than six times the Council’s annual budget.
A number of the investments ran into difficulties from 2020, and the Council reported the investment portfolio lost more than a quarter of its value. In September 2022 the Secretary of State appointed Commissioners to run the Council because of concerns around the “debt for yield” approach and associated governance issues.
In December 2022 the Council gave notice that its expenditure was likely to exceed its resources in that financial year, and extraordinary financial support was received from Central Government. In addition to agreed support in excess of £343 million, the Council has needed to make significant increases to Council Tax bills as well as cutting services, and has reported ongoing uncertainty as to the long-term financial position.
As set out in the Particulars of Fact and Acts of Misconduct, Mr Clark has admitted that his conduct fell significantly short of the standards reasonably to be expected of a member of the ACCA in relation to the implementation of a “debt for yield” approach, in that he:
- Failed to comply with restrictions on the exercise of delegated authority;
- Failed to comply with the relevant statutory framework;
- Failed to ensure that the Council had access to the necessary skills and experience;
- Failed adequately to manage and report on the risks arising; and
- Recklessly provided misleading information to Council members, and therefore to the public.
The sanctions reflect the seriousness of the Misconduct and its consequences, but also Mr Clark’s personal circumstances and the fact that he has co-operated with Executive Counsel’s investigation.
As a result of his exclusion from the ACCA, Mr Clark will no longer be eligible to serve as CFO of a local authority.
The terms of settlement have been agreed by the Executive Counsel and approved by a legal member of the Independent Tribunal Panel.
This is the first time that the FRC has imposed sanctions on a local authority CFO, or anyone else working in local government finance.
The events at the Council have already been the subject of considerable official scrutiny, including a statutory Best Value Inspection (“BVI”) ordered by the Secretary of State for Levelling Up, Housing and Communities. Given the public interest in achieving a swift and proportionate resolution of this matter, the FRC investigation focussed on a number of specific instances of Misconduct apparent from the enquiries that have already been made, including the BVI, and should not be regarded as a definitive account of all the relevant events and the possible Misconduct.
Claudia Mortimore, Deputy Executive Counsel, said:
“The role of a local authority Chief Financial Officer is integral in ensuring prudent management of public funds. Mr Clark held a fiduciary responsibility towards local taxpayers and it was incumbent on him to make sure that the risks arising from Thurrock Council’s financial strategy were identified, managed and reported to the Council’s leadership and members. He fell significantly short of the required standards in a number of respects leading to his exclusion from the profession and the imposition of a Severe Reprimand.”
Read the Settlement Agreement.
Read the Particulars of Fact and Acts of Misconduct.
*Section 151 of the Local Government Act 1972 requires every local authority to ensure that one of their officers has responsibility for the administration of the authority’s financial affairs. For this reason, the CFO is commonly known as the “section 151 officer”.
**The recommended period is the period within which the FRC recommends that the ACCA should not re-admit Mr Clark to membership, if he were to apply. Outside this period he would still need to make an application, and re-admission would be at the discretion of the ACCA. The findings of the FRC in this case would be a relevant consideration for the ACCA to take into account.