Home Business News FSA fines: the 5 biggest ever

FSA fines: the 5 biggest ever

by LLB Editor
5th Dec 11 9:47 pm

HSBC is the latest to get its knuckles rapped for mis-selling, we take a look at the five biggest fines slapped on by the Financial Services Authority

1. £33,320,000-JPMorgan Securities fined

When: June 2010

Under the FSA’s client money rules, firms are required to keep client money separate from the firm’s money in segregated accounts with trust status.  Between 1 November 2002 and 8 July 2009, JPMSL failed to segregate the client money held by its futures and options business (F&O) with JPMorgan Chase Bank N.A (JPMCB).  This error remained undetected for nearly seven years.

2. £17,500,000-Goldman Sachs International fined

When: September 2010

Goldman Sachs International failed to ensure that it had adequate systems in place and controls to enable it to comply with its UK regulatory reporting obligations.

3. £17,000,000-Shell Transport and Trading Company, Royal Dutch Petroleum Company and the Royal Dutch/Shell Group of Companies

When: August 2004

Shell was fined because of unprecedented misconduct in relation to misstatements of its proved reserves. When Shell first publicly revealed on 9 January 2004 that it had misstated its reserves, STT’s share price fell from 401p to 371p (7.5 per cent) reducing its market capitalisation on that day by approximately £2.9bn.

4. £13,960,860Citigroup Global Markets Limited

When: June 2005

Citigroup executed a trading strategy on the European government bond markets on 2 August 2004 which involved the firm building up and then rapidly exiting from very substantial long positions in European government bonds over a period of an hour. The FSA found that Citigroup had breached FSA principles 2 and 3 by failing to conduct its business with due skill, care and diligence.

5. £10,500,000- HSBC

When: December 2011

Britain’s largest bank, HSBC was fined £10.5m yesterday for selling unsuitable products to almost 2,500 elderly customers.

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