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FCA fines UBS £27.6m for 136 million Mifid reporting errors

The watchdog has fined UBS for failings relating to millions on transactions between November 2007 and May 2017

FCA fines UBS £27.6m for 136 million Mifid reporting errors

The Financial Conduct Authority (FCA) has fined UBS £27.6 million for failings relating to 135.8 million transactions reported under Mifid rules over almost a decade to mid-2017.  

UBS had failed to ensure it provided complete and accurate information in relation to approximately 86.67 million transactions, said the FCA. It also erroneously reported a further 49.1 million transactions.

FCA executive director of enforcement and market oversight Mark Steward said: 'Firms must have proper systems and controls to identify what transactions they have carried out, on what markets, at what price, in what quantity and with whom. 

'If firms cannot report their transactions accurately, fundamental risks arise, including the risk that market abuse may be hidden.'

The FCA said the Swiss giant had failed to take reasonable care to organise and control its affairs 'responsibly and effectively' in respect of its transaction reporting.

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

UBS agreed to resolve the case and so qualified for a 30% discount in the overall penalty. Without this discount, the FCA would have imposed a financial penalty of £39.4 million.

The FCA's rules on transaction reporting were based on the EU Markets in Financial Instruments Directive (Mifid) from 5 November 2007 until 2 January 2018.

To date, the watchdog has fined 12 other firms for Mifid transaction reporting breaches. These include Merrill Lynch International, Deutsche Bank AG, Royal Bank of Scotland, Société Générale, Credit Suisse and Barclays Bank.

Mifid II took effect from 3 January 2018 and extended transaction reporting requirements to include additional instruments.

 

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