09 Nov 2018
The Bank of England’s Prudential Regulation Authority (PRA) has fined two banking executives £22,700 and £14,945 after they failed to declare that one of them might be banned from banking activities in the United States.
In November 2014, the New York Department of Financial Services (DFS) published a consent order, fining Bank of Tokyo-Mitsubishi (BTMU) and ordering it and its affiliated firms to prevent the banker from conducting any US banking business in the future.
However, the PRA was not informed about the DFS action until after the publication of the consent order.
“This was information of which the PRA would have reasonably expected notice, regardless of the likelihood or nature of any potential outcome,” the regulator said.
The banker’s breaches meant that the PRA was not aware of the DFS action and its implications for the banker, the PRA added, stating that it was also ‘unable to consider, make or supervise any necessary contingency plans.’
“The requirement to disclose appropriately any information of which the FCA or PRA would reasonably expect notice is currently set out in Senior Manager Conduct Rule 4,” the PRA said in a statement. “The duty imposed by that rule includes a duty to make disclosures in the absence of any request or enquiry from the PRA.”
Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA, said: “It is vital that firms and individuals are completely open and cooperative with the regulator, and that they disclose appropriately any information of which the PRA would reasonably expect notice.”
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