UK’s Financial Conduct Authority imposed a fine of £34.5 mln on Merrill Lynch investment division of Bank of America for not providing transactions report three times in a bit over a ten year period.
According to the FCA, the company did not take necessary measures to organize proper oversight, make tests or assign required number of workers to carry out reporting for derivatives trading in the space of 2 years - from February 2014 to February 2016.
The company was eager to settle from the beginning and so was given a 30% reduction from the total fine of £49.32 mln, the FCA also stated today.
EU financial bodies made their reporting requirements concerning derivatives stricter after the crisis of 2007-2009, which gave them no possibility to quickly figure out those banks exposed to risky positions, providing no clear picture for markets.
At present banks are obliged to report derivatives trades in time, thus enabling regulators to notice if uncontrolled risks amass.
This was the first case of European Markets Infrastructure Regulation in action in relation to a company for not providing information on traded derivatives, the FCA pointed out.