Merrill Lynch hit by £13.3m fine for reporting failure
THE CITY watchdog hit investment bank Merrill Lynch International with an extra-large fine yesterday, expressing frustration that the US institution had failed to get its act together after previous penalties.
Merrill Lynch was fined £13.3m for incorrectly reporting 35m transactions and failing to report another 121,387 between November 2007 and November 2014.
The bank was fined £150,000 for similar offences in 2006, but failed to sufficiently amend its processes.
As a result, the Financial Conduct Authority (FCA) fined the bank £1.50 for every £1 it would usually charge, as “past fines have not been high enough to achieve credible deterrence.”
“Merrill Lynch International has failed to get this right again – despite a Private Warning, a previous fine, and extensive FCA guidance and enforcement action in this area,” said the FCA’s Georgina Philippou. “The size of the fine sends a clear message that we expect to be heard and understood across the industry.”
A spokesperson for the bank said: “We are wholly committed to complying with all FCA requirements and continuously seek to improve all necessary aspects of our reporting.”
Merrill is not the first to be fined for similar breaches. Others include:
•A £4.7m Deutsche Bank fine in August 2014.
•A £5.6m RBS fine in July 2013.
•A £2.45m fine for Barclays in September 2009.
•A £1.75m fine for Credit Suisse in April 2010.