RBS fined £5.6m for transaction reporting failings

The Royal Bank of Scotland (RBS) has been fined £5,620,300 by the Financial Conduct Authority (FCA) for incorrectly reporting transactions it made in wholesale markets, and in some instances, failing to report transactions at all.

RBS failed to properly report 44.8 million transactions between November 2007 and February 2013; and failed altogether to report 804,000 transactions between November 2007 and February 2012, the regulator said.

This represents 37% of relevant transactions carried out by RBS in this period, and breaches FCA rules on transaction reporting and its requirements for firms to have adequate management and controls.

Many of the problems with RBS’ own systems were compounded by the takeover of ABN Amro Bank N.V. in October 200, the FCA said.

The regulator criticised the bank, saying, given the considerable resources available to RBS, it should have been able to overcome these challenges and ensure adequate systems and controls were in place.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Effective market surveillance depends on accurate and timely reporting of transactions. We have set out clear guidance on transaction reporting, backed up 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.”

RBS agreed to settle at an early stage of the investigation, and received a 30% reduction in its fine.

The state-backed lender may announce the name of its news chief executive as early as next week, according to reports.

Stephen Hester’s replacement could come from a shortlist of around three or four internal and external candidates.

Leading internal successors are Ross McEwan, head of RBS’s retail banking unit, and Bruce van Saun, the bank’s finance director.

It is thought the announcement could coincide with RBS’s financial results for the first half of the year, set for release on 2 August.

This article was first published on IFAonline

 

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