The Financial Conduct Authority (FCA) has issued fines of £4,718,000 to investment banking giant Deutsche Bank for incorrectly reporting transactions between November 2007 and April 2013.
According to a statement made by the FCA, Deutsche Bank failed to properly report all 29,411,494 Equity Swap Contracts for Difference (CFD) transactions made during this period, breaching FCA rules on transaction reporting. The regulator had previously issued a private warning to the bank in relation to earlier transaction failures, but says that the issue was not dealt with.
”Effective market surveillance is critical to maintain the integrity of our markets and depends on accurate and timely reporting of transactions,” said Tracey McDermott, the FCA’s director of enforcement and financial crime. “Deutsche is a major market participant responsible for reporting millions of transactions every year. We have repeatedly highlighted the importance of accurate transaction reporting and taken enforcement action against a number of firms. There is simply no excuse for Deutsche’s failure to get this right. Other firms should be in no doubt about our continued focus on this issue.”
The substantial fine would have been even higher had Deutsche Bank not agreed to settle at an early stage of the investigation in return for a 30% reduction, says the FCA.
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