FSA fines Merrill Lynch for reporting failures

News Article - 08 August 2006
Category:

Merrill Lynch International has been fined by the Financial Services Authority (FSA) for failing to accurately report transactions.

In a statement, the regulator said that the company had breached rules regarding reporting accuracy between September 1996 and January 2006, resulting in a fine of £150,000.

The fine relates to an estimated 1.2 million European equity transaction made during the period, where the bank had been reported as the "agent" rather than the "principal" of the transaction.

The FSA said that the error was not "deliberate or reckless" and added that Merill Lynch had taken "substantial steps to improve its systems and controls to ensure that going forward transaction reports are accurate".

It claimed that the bank self-reported the error in January 2006, and had fully co-operated with the FSA investigation.

A spokesperson for the investment bank said in a statement: "Merrill Lynch discovered the error in its computer system, reported to the FSA and then fixed the problem. Merrill Lynch is pleased to have resolved the matter with the FSA."

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »