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UK's FCA fines UBS for failures in transaction reporting.

BIScom Subsection: 
Editorial Staff

UBS AG (UBS) has been fined GBP27,599,400 by the Financial Conduct Authority (FCA) for failings relating to 135.8 million transaction reports between November 2007 and May 2017.

According to a statement from the FCA "UBS failed to ensure it provided complete and accurate information in relation to approximately 86.67m reportable transactions. It also erroneously reported 49.1m transactions to the FCA, which were not, in fact, reportable. Altogether, over a period of 9 and a half years, UBS made 135.8m errors in its transaction reporting, breaching FCA rules.

"The FCA also found that UBS failed to take reasonable care to organise and control its affairs responsibly and effectively in respect of its transaction reporting. These failings related to aspects of UBS’s change management processes, its maintenance of the reference data used in its reporting and how it tested whether all the transactions it reported to the FCA were accurate and complete. "

UBS agreed to resolve the case and so qualified for a 30% discount in the overall penalty. Without this discount, the FCA would have imposed a financial penalty of GBP39,427,795.

A transaction report is a data set submitted to the FCA that relates to an individual financial market transaction which includes, but is not limited to, details of the product traded, the firm that undertook the trade, the trade counterparty, the client (where applicable) and the trade characteristics, price, quantity and venue. The FCA’s rules on transaction reporting were based on the EU Markets in Financial Instruments Directive (2004/39/EC) (MiFID) from 5 November 2007 until 2 January 2018. MiFID II took effect from 3 January 2018 and extended transaction reporting requirements to include additional instruments. MiFID II was comprehensively revised to improve the functioning of financial markets in light of the financial crisis and to strengthen investor protection.

Source: FCA