Goldman Sachs fined £34 million by UK regulator FCA over poor transaction reporting
29 Mar 2019

The United Kingdom’s Financial Conduct Authority (FCA) has fined Goldman Sachs International (GSI) £34,344,700 for failing to submit accurate data relating to over 200 million transactions over a period of almost ten years, ending as recent as 2017.

The lender was unable to ensure it provided complete, accurate and timely information in relation to approximately 213.6m reportable transactions, and it also erroneously reported 6.6m transactions to the FCA, which were not, in fact, reportable.

Mark Steward, FCA Executive Director of Enforcement and Market Oversight, said: ‘The failings in this case demonstrate a failure over an extended period to manage and test controls that are vitally important to the integrity of our markets. These were serious and prolonged failures.

“We expect all firms will take this opportunity to ensure they can fully detail their activity and are regularly checking their systems so any problems are detected and remedied promptly, unlike in this case.”

The FCA also found that GSI failed to take ‘reasonable and effective care’ to organise its affairs responsibly regarding transaction reporting.

These failings related to aspects of GSI’s change management processes, its maintenance of the counterparty reference data used in its reporting and how it tested whether all the transactions it reported to the FCA were accurate and complete.

“We are pleased to have resolved this legacy matter. We dealt with the issues proactively at the time and have made significant investments across the period to develop and enhance our reporting procedures,” Goldman said, according to Reuters.

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