BNY Mellon fined £126 million for FCA over Cass compliance failings

Source: BNY Mellon

BNY Mellon (NYSE: BK) today issued the following statement regarding the findings of a U.K. Financial Conduct Authority ("FCA") investigation into compliance with relevant FCA Principles and U.K. Client Asset Sourcebook ("CASS") rules during the period from November 2007 to August 2013:

"BNY Mellon has worked cooperatively with the FCA to address issues related to our CASS compliance. As part of its resolution with the FCA, BNY Mellon has agreed to pay a penalty of £126 million, including a discount which the FCA applied in recognition of the Company's cooperative efforts to resolve the matter at an early stage. This amount is fully covered by pre-existing legal reserves. Importantly, BNY Mellon remained financially robust throughout the relevant period and, as indicated by the FCA in its Final Notice, no clients suffered any loss as a result of the issues identified.

"Consistent with our commitment to being a strong and trusted partner to our clients, BNY Mellon launched a broad internal review with the assistance of an independent, third-party accounting firm and external legal advisers immediately upon learning of these issues. As a result, we have engaged in a remediation process and have taken clear steps to put in place a framework of new and improved policies and operational procedures as well as enhance our specialist resources across many functions to reinforce our compliance with CASS rules.

"BNY Mellon is very mindful of the importance of safeguarding client assets and has been trusted by its clients to do so for 230 years. This trust could not have been earned without robust regulatory compliance in all of our operating jurisdictions, and we regret in this case that we did not meet our standards or those of the FCA. As always, regulatory compliance remains a key area of focus as we maintain our track record of safety and soundness as a financial institution."

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