Global investment bank receives record fine for transaction reporting failures
Merrill Lynch becomes the first firm to be fined twice for transaction reporting failings, having previously been fined £150,000 in August 2006. It is clear that the FCA will continue to fine firms who fall foul of the regulations as it remains determined to improve the quality of transactional data reported to it.
Merrill Lynch International’s failings included:
• misreporting counterparty 1 and counterparty 2 fields on both market-side transactions as well as on client-side transactions
• misreporting trade times
• incorrectly representing the Buy/Sell indicator field
• omitting to report the maturity dates on equity swaps
• incorrectly identifying the correct counterparty in a number of overseas markets.
This fine sends a clear message to the industry that firms must put their houses in order and that despite MiFID II/R looming on the horizon and due to come into effect on 3 January 2017, there will be no respite from FCA pursuing enforcement action against firms where appropriate.
Our transaction reporting specialists have over 20 years’ experience of working at the FCA’s Transaction Monitoring Unit (TMU).