RBS transaction reporting fine emphasises that FCA expects firms
to get it right:
The Financial Conduct Authority (FCA) has announced that it has fined the Royal Bank of Scotland (RBS) £5,620,300 for incorrectly reporting transactions it made in wholesale markets, and in some instances, failing to report transactions at all. RBS agreed
to settle and qualified for a 30% reduction in the financial penalty which
would otherwise have been £8,029,100.
RBS had failed to properly report 44.8 million transactions between November 2007
and February 2013 and had failed altogether to report 804,000 transactions
between November 2007 and February 2012. This represented 37% of relevant transactions carried out by RBS in this period. This breached FCA rules on transaction reporting and its requirements for firms to have adequate management and controls. The FCA said
that, given the considerable resources available to RBS, it should have been able to overcome the challenges caused by the takeover of ABN Amro Bank N.V. in October 2007 and ensure adequate systems and controls were in place.
The FCA said that the failures are particularly concerning because it had already
provided extensive guidance to firms on how to submit and check transaction
reports, and had taken action against seven firms for similar reporting errors.
The FCA Director of Enforcement said that "effective market surveillance
depends on accurate and timely reporting of transactions. We have set out clear
guidance on transaction reporting, backed by extensive market monitoring, and
we expect firms to get it right. As well as a financial penalty, firms can expect to incur the cost of resubmitting historically incorrect reports. We will continue to take appropriate action against any firm that fails to meet our requirements"