Toronto Dominion fined £7m for scrutiny failure

THE Financial Services Authority (FSA) yesterday fined Canada’s Toronto Dominion Bank £7m, the regulator’s fourth-biggest penalty ever, for failing to scrutinise the prices used by its traders.

The FSA, which has handed out a record £27.8m in penalties for fraud, market abuse and inadequate controls this year, said the fine reflected Toronto Dominion’s failure to fix its procedures after being penalised for a similar offence in 2007.

“This is one of our largest fines and it underlines the seriousness with which the FSA views repeat offences,” FSA director of enforcement Margaret Cole said. “When we uncover failings in a firm we expect them to put it right immediately and to take special care to ensure it does not happen again.”

Toronto Dominion’s fine was reduced from £10m in recognition of its early cooperation with the FSA’s investigation, the regulator said.