The UK Financial Conduct Authority (FCA) just announced that it has fined the company Goldman Sachs International (GSI) £34,344,700 for failing to provide accurate and timely reporting relating to 220.2 million transaction reports between November 2007 and March 2017.
Mark Steward, FCA Executive Director of Enforcement and Market Oversight commented:
The failings in this case demonstrate a failure over an extended period to manage and test controls that are vitally important to the integrity of our markets. These were serious and prolonged failures. We expect all firms will take this opportunity to ensure they can fully detail their activity and are regularly checking their systems so any problems are detected and remedied promptly, unlike in this case.
GSI failed to ensure it provided complete, accurate and timely information in relation to approximately 213.6m reportable transactions, made 220.2m errors in its transaction reporting, breaching FCA rules, failed to take reasonable care to organise and control its affairs responsibly and effectively in respect of its transaction reporting.
The company agreed to cooperate and resolved the case. Without its agreement, the fine would have been £49,063,900.
Jamie Symington, partner in Brown Rudnick’s global White Collar Crime and Regulatory Investigations group and former director of investigations at the FCA, shared his thoughts on today’s news:
The FCA stresses in this latest case that it feels it has given the industry considerable support with getting transaction reporting right, and has explained its importance to market and firm surveillance. With two hefty fines in as many weeks, it is clear that the FCA feels strongly that there is still a need to improve standards throughout the industry.