20th Dec 2021 08:35
(Alliance News) - Standard Chartered PLC has been fined GBP46.6 million over failings in reporting its liquidity position between March 2018 and May 2019, a UK watchdog said on Monday.
The Prudential Regulatory Authority said that while the Standard Chartered's liquidity position was ahead of requirements, the bank made "five errors" when reporting liquidity metrics.
The regulator, part of the Bank of England, had imposed a temporary additional liquidity expectation on StanChart back in 2017, in relation to concerns over the heightened risk of dollar-denominated outflows.
StanChart's errors meant the "PRA did not have a reliable overview of its USD liquidity position", the watchdog said.
"In relation to one of the misreporting errors, SCB only notified the PRA of the error after a four-month internal investigation into the issue. SCB's identification of this issue was information which the PRA reasonably expected to be notified about promptly. By this delay in giving due notice to the PRA, SCB failed to be open and cooperative in breach of Fundamental Rule 7," the PRA added.
"The PRA's investigation identified that SCB's internal controls and governance arrangements underpinning its regulatory reporting in relation to the liquidity metric were not implemented or operating effectively. These issues contributed to SCB's liquidity miscalculations and misreporting and also to the failure to be open and cooperative with the PRA."
At GBP46.6 million, it is the highest-ever fine imposed in a PRA-only enforcement case.
Because Standard Chartered agreed to resolve the matter, it was entitled to a 30% discount on the fine. Without the discount, it would have been forced to fork out GBP66.5 million.
The PRA supervises financial services firms, including lenders and insurers.
Standard Chartered shares were 1.5% lower at 425.30 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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