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 fined | Date | Amount | Reason |
| TSB Bank Plc | 20/12/2022 | £29,750,000 | This 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 Plc | 12/12/2022 | £10,002,300 | The Final Notice refers to breaches of Listing Rules 1.3.3R related to misleading information not to be published in the Retail Bank sector.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 Plc | 08/12/2022 | £107,793,300 | This 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 Limited | 07/12/2022 | £4,775,200 | This 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 Limited | 01/12/2022 | £2,354,331 | This 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 plc | 12/10/2022 | £1,584,100 | This 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 Limited | 04/10/2022 | £531,600 | This 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 Limited | 19/08/2022 | £12,553,800 | This 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 | £2,038,700 | This 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 Plc | 23/06/2022 | £5,829,900 | This 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 Limited | 16/06/2022 | £7,881,700 | This 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 | £811,900 | This 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 | £361,071 | This 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 International | 29/03/2022 | £9,103,523 | The 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 plc | 28/02/2022 | £783,800 | This 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 Limited | 10/02/2022 | £18,022,500 | This 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. |
| Firm or individual fined | Date | Amount | Reasoning |
|---|---|---|---|
| HSBC Bank plc | 17/12/2021 | £63,946,800 | This 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 Plc | 13/12/2021 | £264,772,619.95 | For 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 LLP | 12/11/2021 | £642,400 | This 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 AG | 19/10/2021 | £147,190,200 | This 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 Hussein | 11/10/2021 | £116,000 | The 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 Limited | 08/07/2021 | £90,688,400 | This 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 Limited | 28/06/2021 | £110,000 | This 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 Limited | 06/05/2021 | £178,000 | This 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 Varley | 15/04/2021 | £68,300 | This 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 Horn | 04/03/2021 | £52,500 | The Final Notice refers to breaches of MAR and FIT relating to Market Abuse in the Trading Firm sector. We imposed a Fine and Prohibition. |
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.
Keywords: Fca Principles For Business Conflicts Of Interest, Fca Principles For Business Rules, Fca Principles For Business Smcr, Fca Principles For Business Sourcebook, Fca Principles For Business Tcf, Fca Principles For Business Treating Customers Fairly, Principles For Business, Principles For Business Sustainability, Principles For Business Vulnerable Customers, compliance meaning, compliance breach examples, compliance breach meaning, what is legislative compliance, what is regulatory compliance,