Goldman Sachs Fined £34 Million for Reporting Failures
The FCA (Financial Conduct Authority) announced on Thursday, March 28th 2019 that they have fined £34,344,700 to Goldman Sachs. This is the result saw the company not providing timely and correct information on more than 220 million transactions between November 2007 & March 2017.
During this long period, the financial firm didn’t provide the Financial Conduct Authority with accurate and sustainable information on 213.6 million reportable transactions. They also misreported 6.6 Million transactions, and those were not reportable.
The transaction report, which is to be submitted annually to the FCA, relates to personal financial market transactions. It includes details pertaining to the type of product traded, how the firm carried out the trade and more.
During the period in question, Goldman Sachs has 220.2 million errors in its reporting of transactions. Additionally, the UK watchdog noted that the company failed to control and organize its transaction affairs reporting.
FCA Gives Goldman Sachs 30% Discount on Penalty
Goldman Sachs, one of the largest global financial firms didn’t put up a fight and agreed to resolve they’re fine immediately. Consequently, that qualified them to a 30% discount on the overall penalty due to their compliance. Golden Sachs International would have received a penalty of £49,063,900.
The Direct of Enforcement and Market Oversight at the Financial Conduct Authority stated, “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 that any problems are detected and remedied promptly, unlike in this case.”
This isn’t the first time that the FCA has fined financial firms in recent history. Thirteen other firms have been charged with similar breaches, including UBSAG which was fined 27.6 million. Other firms include Barclays Capital Securities Limited and Barclays Bank Plc.
