Release Date: 19th March 2019
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined UBS AG £27,599,400 for significant failings in transaction reporting between November 2007 and May 2017. This penalty results from UBS’s failure to provide accurate and complete information for approximately 86.67 million reportable transactions, while erroneously reporting 49.1 million transactions that were not reportable.
Mark Steward, FCA Executive Director of Enforcement and Market Oversight, emphasised the importance of accurate transaction reporting for market oversight and the detection of market abuse. UBS’s errors, totalling 135.8 million over nine and a half years, highlight a breach of FCA rules and a lack of responsible and effective organisation and control within UBS.
These reporting failures were linked to UBS’s change management processes, the maintenance of reference data, and the testing of transaction report accuracy and completeness. UBS agreed to settle the case, qualifying for a 30% discount on the penalty, which otherwise would have been £39,427,795.
Key Takeaways for Other Firms:
- Ensure Accurate Transaction Reporting: Implement robust systems and controls to accurately report transactions to the FCA.
- Maintain Effective Change Management: Regularly update and test systems and data to ensure compliance with regulatory requirements.
- Comprehensive Testing and Monitoring: Continuously test and monitor transaction reporting processes to ensure accuracy and completeness.
- Responsible Organisation and Control: Ensure responsible management and control over all reporting functions to avoid regulatory breaches.
In conclusion, UBS AG’s substantial fine underscores the critical need for firms to maintain precise and comprehensive transaction reporting systems. Proper oversight and rigorous testing are essential to comply with FCA regulations and to uphold the integrity of financial markets.
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