Barclays fined £2.45 million for transaction reporting failures

The Financial Services Authority (FSA) has fined Barclays Capital Securities and Barclays Bank £2.45m for failing to provide accurate transaction reports to the watchdog and for "serious weaknesses" in systems and controls in relation to transaction reporting.

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Barclays fined £2.45 million for transaction reporting failures


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The regulator says it discovered discrepancies in Barclays' data while reviewing a suspected incident of market abuse by a third party. A subsequent review of Barclays' transaction reporting arrangements revealed that it did not have adequate systems and controls in place to meet the transaction reporting requirements as well as a "substantial number of errors" in the data submitted.

Firms are required to submit data for reportable transactions by close of business the day after a trade is executed.

Alexander Justham, FSA director of markets, says: "The penalty imposed on Barclays is significantly higher than previous penalties imposed for transaction reporting errors. This reflects the serious nature of Barclays' breaches and is a warning to other firms that the FSA will not tolerate inadequate systems and controls."

He says Barclays' breaches occurred despite repeated reminders to firms of their obligations to provide accurate data and the importance of compliance with the FSA rules on transaction reporting during the course of 2007 and 2008.

Barclays agreed to settle with the FSA at an early stage in the invesitgation, earning a 30% discount on the fine, and commissioned a review of its internal processes and systems to resolve the failures.

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