Release Date: 22nd April 2015
To access the original FCA document, click here.
Summary
Who was fined:
- Merrill Lynch International (MLI)
Why the FCA fined them:
- The FCA fined MLI £13,285,900 for incorrectly reporting 35,034,810 transactions and failing to report another 121,387 transactions between November 2007 and November 2014.
- The severity of MLI’s misconduct and their failure to address the root causes despite previous warnings and fines contributed to the high penalty.
- The FCA used a penalty of £1.50 per line of incorrect or non-reported data for the first time, reflecting the need for a credible deterrent.
Key Takeaways for Other Firms:
- Accurate Transaction Reporting: Ensure all transaction reports are accurate and complete to comply with FCA regulations.
- Prompt Issue Resolution: Address root causes of reporting failures promptly to avoid repeated non-compliance.
- Understand Regulatory Guidance: Stay updated and compliant with FCA guidance and enforcement actions.
- Invest in Compliance Systems: Invest in robust compliance systems to prevent and detect reporting failures.
- Early Settlement Cooperation: Cooperate early in FCA investigations to potentially reduce fines.
By adhering to these principles, firms can avoid significant regulatory penalties and contribute to market integrity.
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