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FCA Fine? You may be in good company!

FCA Fine? You may be in good company!

Penalties for regulatory compliance breaches can be eye-watering in scale. This is the failure side of compliance meaning and understanding by firms – or is it?

2022 largest Fines

Firm or individual finedDateAmountReason
TSB Bank Plc20/12/2022£29,750,000This Final Notice refers to breaches of PRIN 2 related to failing to exercise due skill, care and diligence and PRIN 3 for not taking reasonable care in organising and controlling its affairs responsibly and effectively, with adequate risk management systems, in the retail banking sector. The FCA imposed a financial penalty of £29.75 million.
Metro Bank Plc12/12/2022£10,002,300The Final Notice refers to breaches of Listing Rules 1.3.3R related to misleading information not to be published in the Retail Bank sector. We imposed a financial penalty.
Santander UK Plc08/12/2022£107,793,300This Final Notice refers to breaches of PRIN 3 related to the risk of financial crime in the Retail Banking sector. We imposed a financial penalty.
BGC Brokers LP, GFI Securities Limited and GFI Brokers Limited07/12/2022£4,775,200This Final Notice refers to breaches of Principle 3 of the FCA’s Principles for Businesses and Article 16(2) of the Market Abuse Regulation related to market protection and wholesale conduct in the Trading Firm sector. We imposed a financial penalty.
Pembrokeshire Mortgage Centre Limited01/12/2022£2,354,331This Final Notice refers to breaches of Principles 3, 7 and 9 related to the provision of unsuitable defined benefit pension transfer advice in the pensions sector. We imposed a financial penalty.
Gatehouse Bank plc12/10/2022£1,584,100This Decision Notice refers to breaches of the Money Laundering Regulations 2007 related to financial crime in the Retail bank sector. A financial penalty has been imposed.
Sigma Broking Limited04/10/2022£531,600This Final Notice refers to breaches of SUP 17, SUP 15, PRIN 3 and Article 16 of MAR related to market abuse and transaction reporting failures in the trading firm sector. We imposed a financial penalty.
Citigroup Global Markets Limited19/08/2022£12,553,800This Final Notice refers to breaches of Principle 2 of the FCA’s Principles for Businesses and Article 16(2) of the Market Abuse Regulation related to market protection and wholesale conduct in the Investment Banking and Trading Firm sector. We imposed a financial penalty.
The TJM Partnership Limited (Formerly known as Neovision Global Capital Limited) (In Liquidation)15/07/2022£2,038,700This Final Notice refers to breaches of PRIN 2 and PRIN 3 related to the risk of financial crime in the trading firms sector. We imposed a financial penalty.
Ghana International Bank Plc23/06/2022£5,829,900This Decision Notice refers to breaches of the Money Laundering Regulations 2007 related to financial crime in the Corporate Banks sector. We imposed a financial penalty.
JLT Specialty Limited16/06/2022£7,881,700This Final Notice refers to breaches of PRIN 3 related to anti-bribery and corruption and financial crime in the general insurance and protection sector. We imposed a financial penalty.
TFS Loans Limited (in administration)09/06/2022£811,900This Final Notice refers to breaches of the Principle 6 and 3 and CONC related to the unfair treatment of customers acting as guarantors in the consumer credit sector. A financial penalty has been imposed.
Andrew Mark Thomas Page 16/05/2022£361,071This Final Notice refers to breaches of APER 1 and FIT related to a lack of fitness/propriety, mis-selling and failing to be open and co-operative in the investment adviser and pensions sector. We imposed a prohibition and financial penalty.
GAM International29/03/2022£9,103,523The Final Notice refers to breaches of PRIN 2 and 8 related to the management of conflicts of interest in the asset management sector. We imposed a financial penalty.
Barclays Bank plc28/02/2022£783,800This Final Notice refers to breaches of PRIN 2 related to financial crime in the corporate banking sector. We imposed a financial penalty.
Julius Baer International Limited10/02/2022£18,022,500This Final Notice refers to breaches of PRIN 1, PRIN 3 and PRIN 11 related to failing to act with integrity, governance and failing to be open and co-operative in the in the Wealth Management and Private Banking sector. We imposed a financial penalty.

Regulatory consulting from FCA compliance consultants, the niche consultancy known nationwide as the 'compliance consultant london'.2021 Fines

Firm or individual finedDateAmountReasoning
HSBC Bank plc17/12/2021£63,946,800This Decision Notice refers to breaches of the Money Laundering Regulations 2007 related to financial crime in the Retail bank sector. A financial penalty has been imposed.
National Westminster Bank Plc13/12/2021£264,772,619.95For 3 offences of failing to comply with the Money Laundering Regulations 2007. Note: This is not a fine that will appear in the FCA’s statutory accounts as it is not levied by, or paid to, the FCA.
Sunrise Brokers LLP12/11/2021£642,400This Final Notice refers to breaches of PRIN 2 and PRIN 3 related to the risk of financial crime in the trading firms sector. We imposed a financial penalty.
Credit Suisse International, Credit Suisse Securities (Europe) Ltd, and Credit Suisse AG19/10/2021£147,190,200This Final Notice refers to breaches of Prin 2 and Prin 3 related to financial crime and anti-bribery and corruption failings in the investment banking sector. We imposed a financial penalty.
Omar Hussein11/10/2021£116,000The Final Notice refers to breaches of Statements of Principle for Approved Persons 1 and 7. We imposed a prohibition and fine.
Lloyds Bank General Insurance Limited, St Andrew’s Insurance Plc, Lloyds Bank Insurance Services Limited and Halifax General Insurance Services Limited08/07/2021£90,688,400This Final Notice refers to breaches of PRIN 3 and PRIN 7 related to communications with customers in the general insurance and protection sector. We imposed a fine.
Crosfill and Archer Claims Limited28/06/2021£110,000This Final Notice refers to breaches of breach of the Conduct of Authorised Persons Rules 2014 (“CAPR”) related to unfair treatment of customers in the claims management sector. We imposed a fine.
Sapien Capital Limited06/05/2021£178,000This Final Notice refers to breaches of PRIN 2 and PRIN 3 related to the risk of financial crime in the trading firms sector. We imposed a Fine.
Simon John Varley15/04/2021£68,300This Final Notice refers to Section 63A FSMA and breaches relating to APER 1 and FIT relating to a lack of honesty and integrity in the investment advisory sector. We imposed a fine and a prohibition.
Adrian Horn04/03/2021£52,500The Final Notice refers to breaches of MAR and FIT relating to Market Abuse in the Trading Firm sector. We imposed a Fine and Prohibition.

 

Gerry Neu
Gerry Neu
2023-06-15
Lee, in particular, but the whole team has excellent FCA experience and provide the context for solid advice. What stands out, especially, is the practical approach and the understanding of compliance within a commercial environment. Much appreciated assistance in an FCA application, but also policies and procedures and MLRO activity.
SRUTI SOURAV SARANGI
SRUTI SOURAV SARANGI
2023-02-21
Compliance Consultant had imparted two days intense training on key compliance subjects . With highly experienced trainer, excellent content and captivating sessions they delivered the best to our team. We are thankful to Compliance Consultant for their services.
Simon Dhillon
Simon Dhillon
2022-08-23
I worked with Compliance Consultant for 2 years and was involved in a variety of projects for various firms, both start-ups and established. Lee was a pleasure to work with and was very knowledgeable about all aspects of compliance, this provided reassurance that client work was carried out to a high standard. The team at Compliance Consultant worked very closely and was always on hand to provide assistance or advice on specialist areas for eg FCA Authorisations or Audits.
SMTAKS
SMTAKS
2022-08-15
In a high pressure situation, Compliance Consultant stepped in to help us further understand the requirements and completely changed the authorization documentation urgently needed.
Angela Young
Angela Young
2022-01-27
First class service in every way. Whilst applying for FCA authorisation the original compliance company we were working with let us down. Feeling despondent, Lee from Compliance Consultant stepped in and assured us we would have our application submitted on time. Suzanna was our direct contact and she worked tirelessly to ensure we met our deadline. Not only did we meet our deadline, but our completed application was submitted to the FCA, 1 week ahead of schedule. Both Lee and Suzanna took the time to communicate clearly the detail within each section of the application. They went above and beyond and felt more like friends by the end of the process. I would highly recommend Compliance Consultant both in terms of professionalism and value for money. We look forward to working with Compliance Consultant in the future.
Grant Townshend
Grant Townshend
2022-01-10
We approached Lee between Christmas & New Year about some compliance work we urgently needed completing for a newco setup. He communicated very clearly what we would need and why. Once instructed, he delivered this on time and cost effectively. Recommended.
Mohamed Yassin
Mohamed Yassin
2021-10-28
Outstanding job on every level. We are very pleased with their work. Done on time, done on budget and they know what they are doing. They handled everything with extreme professionalism and delivered our project in a timely manner. We couldn't be happier with the end outcomes, Lee and his team were extremely thorough, understanding and responsive throughout each stage of our contract. We look forward to working with them in the future on our project. Thank you, Lee and Compliance Consultant team.

 

2020 largest Fines
1. Goldman Sachs International (fined £97m)
PRIN 2 and PRIN 3 breaches – Risk management failures
2. Lloyds Bank, BoS & The Mortgage Business (fined £64m)
PRIN 3 & 6 breaches – Poor handing of mortgage customers
3. Commerzbank (fined £37.8m)
PRIN 3 breaches – AML failings
4. Barclays (fined £26m)
PRIN 6, PRIN 3, and CONC rules breaches – unfair treatment of customers in the Retail Banking sector
5. Charles Schwab (fined £8.96m)
PRIN 10 and 11, CASS and Section 20 FSMA breaches – Safeguarding and Compliance Issues
6. Moneybarn (fined £2.8m)
PRIN 6 & 7 and CONC rules breaches – Unfair treatment of customers

How could these fines have been avoided?

The FCA’s ‘Principles for Business’ (PRIN) set out the fundamental obligations for firms under the regulatory regime. These are the compliance meanings that all must be vigilant of and ensure they work to.

According to the FCA principle 3, a firm ‘must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems’.
This refers to a firm’s:

  • Robust governance arrangements – rules, practice and processes. How Can We Help? We can review your arrangements.
    Skills, knowledge and expertise of staff – in other words train people!
  • Outsourcing responsibilities – know your suppliers and make sure they are compliant. How Can We Help? We can review your arrangements.
  • Reasonable steps – under SMCR you need to ensure you have decision making fully and appropriately records. How Can We Help? We can review your arrangements.
  • Record-keeping – keep records, and make sure they are accurate and up-to-date. How Can We Help? We can review your arrangements.
  • Conduct Risk – keep records of any T&C breaches, mis-selling, product design etc. How Can We Help? We can review your arrangements.
  • Conflicts of interest – keep a compliance register to avoid issues. How Can We Help? We can review your arrangements. 

The FCA will identify potential or actual consumer harm caused by the actions of firms or markets and take action to address that conduct. These penalties should act as a clear warning to any companies who aren’t taking financial compliance as seriously as they should be. This is the meaning of compliance breach and the sharp end of what is legislative compliance today.

 

If you would like to have any of your processes, files, procedures, governance or strategy planning reviewed, in confidence, we can be contacted on the above number. Or, just complete the form below.


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