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Credit Suisse is fined £1.75m for data failures

The FSA has fined three firms a total of £4.2m for failing to provide accurate and timely transaction reports.

Credit Suisse has been fined £1.75m, Getco Europe, a market-maker trading on electronic markets, was fined £1.4m and agency broker, Instinet Europe, was hit with a fine of £1.05m.

The regulator says all firms are required to have systems and controls in place to ensure they submit accurate data for reportable transactions by close of business the day after a trade is executed. The FSA uses this data to detect and investigate suspected market abuse.

All three firms were found to have committed multiple breaches that resulted in failures to provide transaction reports promptly and correctly to the FSA.

The regulator says each firm could have prevented the breaches by carrying out regular reviews of its data. Despite repeated reminders from the FSA during the course of 2007 and 2008, none of the firms did this.

The firms have now taken steps to improve their processes and resolve the errors, resubmitting reports to the FSA where necessary.

All firms cooperated fully with the FSA in the course of the investigations and agreed to settle at an early stage, qualifying for a 30 per cent discount. Without the discounts, the total fines would have been £6m.

FSA director of markets Alexander Justham says: “Without quality data, we cannot properly detect and investigate market abuse, identify market-wide risks or have a comprehensive understanding of the activities of each firm. This data is vital in our efforts to combat financial crime and we will continue to pursue firms that fail to provide quality data.

“Firms and their management must ensure they implement and operate systems and controls that are able to ensure quality transaction reporting. The standard of regulatory reporting by these firms fell far short of what the FSA expects and requires.”


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