11:40am UK, Tuesday September 08, 2009
Banking group Barclays has been fined £2.45m for failing to report details of trade transactions properly, the City watchdog has announced.
Barclays 'has cooperated fully' and says it will settle the fine soon
The Financial Services Authority said Barclays failed to provide accurate reports and was guilty of "serious weaknesses" in systems and controls in the way it detailed transactions.
It added that the fine was "significantly higher" than previous penalties handed out for similar infringements.
Firms are required to submit data for reportable transactions to the regulator by close of business the day after a trade is executed.
The FSA uses these data to detect and investigate suspected market abuse such as insider trading and market manipulation.
The watchdog said the breaches occurred despite "repeated reminders" of obligations to provide accurate data.
Alexander Justham, FSA director of markets, said: "Barclays' reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse.
"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."
The firm has taken a number of steps to address the concerns raised including commissioning a review of its reporting process and committing resources to improve its processes.
Barclays cooperated fully with the FSA in the course of its investigation and agreed to settle at an early stage.
In doing so it qualified for a 30% discount - without which the penalty would have been £3.5m.
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