Commerzbank handed a £595k penalty by FSA

COMMERZBANK is the latest financial institution to be handed a fine by the Financial Services Authority (FSA) after it was ordered to pay £595,000 for inaccurately providing transaction reports.

The financial regulator yesterday slapped the German banking giant with the fine and accused it of failing to report trading transactions throughout a two-year period.

Under FSA rules, financial institutions are required to submit data on trades the day after they were executed so the FSA can keep an eye out for market abuse.

“Commerzbank’s reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse,” said Alexander Justham, director of markets at the FSA.

A spokesperson from the bank said: “Commerzbank has fully cooperated with the FSA and is deeply committed to meeting its regulatory obligations.”

The FSA said the bank escaped paying £850,000 as a result of its cooperation during the investigation.