FSA fines Barclays over data

BARCLAYS has been fined &pound;2.45m by the Financial Services Authority (FSA) for failing to provide the regulator with accurate reports of its transactions and for weaknesses in its systems and controls.<br /><br />The City watchdog said it had stumbled across &ldquo;discrepancies&rdquo; in Barclays&rsquo; data while probing an incident of suspected market abuse by a third party.<br /><br />A subsequent review of Barclays&rsquo; transaction reporting methods revealed that the bank did not have appropriate systems in place to meet transaction reporting requirements and had submitted error-strewn data to the regulator.<br /><br />The FSA requires financial institutions to submit data on reportable transactions by close of business the day after execution of a trade, to help it detect insider trading and market manipulation.<br /><br />Alexander Justham, FSA director of markets, said: &ldquo;Complete and accurate transaction reports are an essential component of the FSA&rsquo;s market monitoring work. <br /><br />&ldquo;Barclays&rsquo; reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse.<br /><br />&ldquo;The penalty imposed on Barclays is significantly higher than previous penalties imposed for transaction reporting errors. <br /><br />&ldquo;This reflects the serious nature of Barclays&rsquo; breaches and is a warning to other firms that the FSA will not tolerate inadequate systems and controls.&rdquo;<br /><br />But the regulator said that Barclays&rsquo; fine had been reduced by 30 per cent from &pound;3.5m because the bank had co-operated fully with the FSA&rsquo;s investigation and was implementing new controls.