The UK Financial Conduct Authority (FCA) has fined Merrill Lynch International nearly £13.3 million for incorrectly reporting over 35 million transactions, the largest fine of its kind.
According to the FCA, Merrill Lynch incorrectly reported 35,034,810 transactions, and failed to report an additional 121,387 transactions between November 2007 and November 2014.
An FCA statement says Merrill Lynch failed to “adequately address the root causes over several years dispute… and a poor history of transaction reporting compliance.”
It is the largest fine by the UK regulator for transaction reporting failures. Last August Deutsche Bank was hit by a £4.7 million fine over similar offences, as was Royal Bank of Scotland (RBS) with a £5.6 million fine in 2013.
Other banks such as Barclays, Commerzbank and Societe Generale have also been found of transaction reporting failures, as the FCA continues its clampdown on poor practice.
“Proper transaction reporting really matters. 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,” says Georgina Philippou, acting director of Enforcement and Market Oversight, FCA.
“The size of the fine sends a clear message that we expect to be heard and understood across the industry.”