The regulator of financial services in the UK has today issued a significant £1.6m fine to Societe Generale, in an attempt to clamp down on serious, persistent reporting failures at the bank over the last two years.
The French investment banking outfit, which employs more than 160,000 staff and holds in excess of €1tn in assets, has been the subject of ongoing FSA reviews, with as much as 8 in 10 transactions reportedly inaccurately tracked.
Today’s fine is the sixth of its kind handed to the bank over the last twelve months along with numerous warnings and reminder notices to encourage Societe Generale to rectify the issues reported, which are essential in helping regulators monitor and regulate on insider dealing and market abuse.
A FSA spokesperson suggested the fine represented the severity of Societe Generale’s persistent breaches, although the bank has fully complied with the FSA’s investigations in addition to settling payment early.
The move follows similar crackdowns on banks including Barclays, which was fined almost £2.5mil in June as a response to similar reporting misgivings, after a reporting fine for an equivalent amount was issued last August. Likewise, Credit Suisse was amongst a collective of banks recently fined £4.2million in respect of their own regulatory breaches.
After coming under intense scrutiny in the wake of the banking crisis, the Financial Services Authority has appeared particularly keen to enforce reporting requirements on banks and financial institutions.