Barclays fined £2m by FSA for reporting problems
Barclays's problems with its transaction systems and processes see it hit with a whopping fine from the FSA
Barclays has been fined £2.45m for failing to provide the FSA with accurate
transaction reports, and for serious weaknesses in systems and controls in
relation to transaction reporting.
The FSA hit Barclays Bank and Barclays Capital Securities with the fine after it
discovered that its systems failed to meet with reporting requirements.
“The FSA discovered discrepancies in Barclays’ data while reviewing a suspected
incident of market abuse by a third party,” said the FSA in its statement.
“A subsequent review of Barclays’ transaction reporting arrangements revealed
that it did not have adequate systems and controls in place to meet the
transaction reporting requirements as well as a substantial number of errors in
the data submitted to the FSA.”
“The penalty imposed on Barclays is significantly higher than previous penalties
imposed for transaction reporting errors,” said Alexander Justham, FSA director
of markets.
“This reflects the serious nature of Barclays’ breaches and is a warning to
other firms that the FSA will not tolerate inadequate systems and controls.”
Barclays cooperated fully with the FSA in its investigation and agreed to settle
at an early stage, qualifying for a 30% discount.
The bank has taken steps to review its systems and alter its processes.