22nd March 2019

FCA fines UBS £27.6m for transaction reporting failures

UBS AG (UBS) has been fined £27,599,400 by the Financial Conduct Authority (FCA) for failings relating to transaction reports between November 2007 and May 2017.

UBS failed to ensure it provided complete and accurate information in relation to approximately 86.67 million reportable transactions. It also erroneously reported 49.1 million transactions to the FCA, which were not, in fact, reportable. Altogether, over a period of nine and a half years, UBS made 135.8 million 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.

Mark Steward, FCA Executive Director of Enforcement and Market Oversight said: "Firms must have proper systems and controls to identify what transactions they have carried out, on what markets, at what price, in what quantity and with whom. If firms cannot report their transactions accurately, fundamental risks arise, including the risk that market abuse may be hidden.”

UBS agreed to resolve the case and so qualified for a 30 per ent discount in the overall penalty. Without this discount, the FCA would have imposed a financial penalty of £39,427,795.