Tags: RBS | fine | transactions | crisis

RBS Fined $8.6 Million by FCA for Failing to Report Transactions

Wednesday, 24 Jul 2013 06:38 AM

Royal Bank of Scotland Group Plc was fined 5.6 million pounds ($8.6 million) for incorrectly reporting wholesale transactions from 2007 through 2013, the Financial Conduct Authority said in a statement on its website today.

The bank failed to properly report around 37 percent of the total number of trades, which included over-the-counter derivatives transactions, during the six year period, the U.K.’s markets watchdog said.

“We have set out clear guidance on transaction reporting, backed up by extensive market monitoring, and we expect firms to get it right,” Tracey McDermott, director of enforcement and financial crime at the FCA, said in the statement. “As well as a financial penalty, firms can expect to incur the cost of resubmitting historically incorrect reports.”

Global regulators have sought to bolster oversight of the swaps market after largely unregulated trades helped fuel the 2008 credit crisis and led to the rescue of American International Group Inc., a U.S.-based insurer that booked large amounts of swaps trades in Europe.

The Edinburgh-based lender earned a 30 percent discount on its fine for cooperating with the regulator at an early stage in the investigation.

“We regret the failings that were uncovered and have subsequently made significant investments to our systems and controls in this area,” Sarah Small, an RBS spokeswoman, said in an e-mailed statement.

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