The news broke today of the massive £35 million fine imposed on Bank of America’s Merrill Lynch by the UK’s Financial Conduct Authority for breaking reporting rules.
And that hardly a week after our recent blog post highlighting new revenue reporting rules coming into place towards the end of this year.
Essentially, the US Bank failed to report nearly 69 million transactions over 2 years – and, just as you think £35 million was a hefty sum, was already reduced by 30% because the company agreed to settle at an early stage. The bank said it had reported the issues as soon as it was discovered and that they were working towards a quick resolution, and following financial regulations.
That’s great. But one would think that an institution as large as Merrill Lynch would surely get it right?
Well, clearly, wrong.
The standing by the FCA is clear – the onus is on the individual organisation to be aware of, implement, and adhere to financial regulations and ensure that their reporting systems worked accordingly.
So, if a massive organisation like Merrill Lynch can overlook such a critical part of reporting regulation, how much more so are organisations at risk who do not regularly review their own reporting structures and processes?
The beauty of working with a company like CFPro is that you don’t need to worry about that. Our job is to keep you compliant. That means that we are at the forefront of changing regulations and process requirements, and we know what organisations like the Financial Conduct Authority expect when it comes to the way you manage your company’s books.
The FCA’s positioning is clear. Mark Steward, the FCA’s head of enforcement intends to “continue to take appropriate action against any firm that fails to meet requirements”. And if your business isn’t actively looking at the upcoming changes in regulation, or have a dedicated team focussed purely on ensuring that things are done correctly, and efficiently, then you risk a firm FCA knock on the front door.