Standard Chartered hit with £46m fine for misreporting liquidity position
The Bank of England has slapped Standard Chartered bank with a £46m fine for reporting errors and a lack of cooperation with regulators.
The Prudential Regulation Authority (PRA) said today that it would fine the bank for “failing to be open and cooperative” with the authority and “failings in its regulatory reporting governance and controls” in relation to liquidity expectations.
The regulator imposed the record fine after it found that the bank had failed to notify the regulator for four months after it identified a reporting mistake.
Sam Woods, the chief executive officer of the PRA said: “we expect firms to notify us promptly of any material issues with their regulatory reporting, which Standard Chartered failed to do in this case.
“Standard Chartered’s systems, controls and oversight fell significantly below the standards we expect of a systemically important bank, and this is reflected in the size of the fine in this case,” Woods added.
The PRA noted that the bank’s liquidity position was above its required level throughout the period.
The fine was originally going to be even higher at £66.5m, but the international banking giant agreed to settle and was given a 30 per cent discount.
In a statement first reported in the FT Standard Chartered said the reporting errors were “self-identified and self-corrected in 2018 and 2019”.
“Standard Chartered has co-operated proactively and fully with the PRA’s investigation and has made significant improvements to and substantial investment in its liquidity and regulatory reporting processes and controls and remains committed to accurate regulatory reporting,” it added.
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