FSA issues £4.2m fine for transaction reporting failures

08/04/2010

Written by Tom Davis

Three firms have been fined a total of £4.2 million by the Financial Services Authority (FSA) for failing to provide it with "accurate and timely" transaction reports.

Credit Suisse has been ordered to pay a £1.75 million fine, while market maker Getco Europe and agency broker Instinet Europe will have to pay out £1.4 million and £1.05 million respectively.

The FSA requires companies to have the necessary systems and controls in place to submit data accurately for reportable transactions by the close of business on the day after the trade is executed, with the information used by the regulator to investigate suspected market abuse.

However, the three firms in question committed multiple breaches of this.

Alexander Justham, director of markets, said: "Without quality data we cannot properly detect and investigate market abuse, identify market wide risks or have a comprehensive understanding of the activities of each firm."

While it is not possible to have insurance protection to cover FSA fines, it is possible to arrange corporate legal liability insurance to cover legal costs incurred defending such actions.

Meanwhile, the FSA recently announced it has appointed former BBC journalist Tom Kelly as its new communications director.

© 2010 Adfero Ltd.

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