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The UK’s Prudential Regulation Authority fined Standard Chartered over £ 46.5million for repeatedly reporting a key liquidity measure incorrectly and for not being ‘open and cooperative’ with it. one of Britain’s most important financial regulators.
The fine, the highest ever imposed by the PRA in an enforcement case, relates to Standard Chartered’s misrepresentation of its liquidity position from March 2018 to May 2019.
The PRA said Standard Chartered made five errors in its regulatory reporting during this period, so that “the PRA did not have a reliable picture of its USD liquidity position”. The PRA had imposed a temporary additional liquidity requirement on the bank due to concerns about dollar outflows in October 2017.
The bank only informed the PRA of one of the errors after a four-month internal review.
“We expect companies to promptly notify us of any material issues with their regulatory reports, which Standard Chartered has not done in this case,” said Sam Woods, Managing Director of PRA.
“Standard Chartered’s systems, controls and oversight have fallen well below the standards we would expect from a systemically important bank, and this is reflected in the amount of the fine in this case. “
The PRA noted that Standard Chartered’s overall liquidity position was above its baseline liquidity requirement throughout the period. The fine includes a 30 percent discount for the settlement.
In a statement, Standard Chartered said the reporting errors were “self-identified and self-corrected in 2018 and 2019”.
“Standard Chartered has cooperated proactively and fully with the PRA investigation and has made significant improvements and investments in its liquidity and regulatory reporting processes and controls and remains committed to providing accurate regulatory reporting,” said he added.