Merrill Lynch stung by FCA with £34.5m fine
Britain’s financial watchdog has fined Merrill Lynch International £34.5 million for failing to report 68.5 million exchange traded derivative transactions, in what the watchdog said was the first fine of its kind.
The Financial Conduct Authority said the fine was related to unreported transactions that took place between 12 February, 2014 and 6 February, 2016 and was the first enforcement against a firm for this kind of activity under the European Markets Infrastructure Regulation (EMIR).
The fine for Merrill Lynch International had been cut down by 30 per cent after the firm agreed to settle during an early stage of the investigation.
Mark Steward, the FCA’S executive director of enforcement and market oversight, said: “It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly. There needs to be a line in the sand.”