FSA fines SocGen £1.57m

The FSA has fined the London branch of Société Générale £1.57m for failing to provide it with accurate transaction reports.

The regulator says the fine reflects the seriousness of SocGen’s failure to submit accurate reports for approximately 80 per cent of its reportable transactions, across all of its asset classes, for a period of over two years.

SocGen also breached FSA rules by failing to retain and have available all relevant transaction reporting data. Firms must keep all data related to financial transactions and make it available to the FSA for at least five years.

Between November 2007 and February 2010, SocGen either failed to report, or inaccurately reported, 18.8 million of its 23.5 million reportable transactions.

The FSA says these breaches occurred despite it sending repeated reminders to firms of their obligations to provide accurate data and comply with FSA rules on transaction reporting.

SocGen has commissioned a formal review of its transaction reporting process and committed resources to improving its processes and resolve the errors.

The firm qualified for a 30 per cent discount for co-operating with the FSA and agreeing to settle at an early stage. Without the discount the fine would have been £2.25m.

Director of enforcement and financial crime Margaret Cole says: “SocGen failed to accurately report a very high proportion of its transactions for a significant length of time.

“This failure is a serious breach of our rules as it can have a damaging impact on our ability to detect and investigate suspected market abuse.”

A Societe Generale spokeswoman says: “We have fully cooperated with the FSA throughout their investigation and have taken and continue to take all the necessary steps to ensure that we are able to meet our transaction reporting obligations to the FSA going forward.”