HSBC Fined By FSA For Transaction Reporting Breaches
The Financial Services Authority (FSA) on Wednesday fined HSBC Bank plc GBP100,000
for failing to take reasonable steps to ensure the accuracy of transaction reports
it made to the FSA from December 2002 until August 2005.
In July 2005, the FSA requested certain trading information from HSBC Stockbroker
Services (HSS) which, when reviewed, revealed that HSS had reported a client
transaction as a "sale" prior to a positive announcement and a "purchase"
after it. Following discussions between the FSA and HSBC it emerged that transaction
reports being made through HSS had been inaccurately representing client purchases
as client sales and vice versa. In a statement, the financial services regulator explained that: "The FSA relies on firms to provide accurate transaction reports to enable
it to monitor the market effectively and failing to do so could affect the FSA's
ability to maintain confidence in the financial markets and reduce financial
crime." HSBC has taken the necessary remedial steps to improve its systems and controls
in this area, and reportedly co-operated fully with the FSA's investigation
into the matter. .
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