London, Oct 23 (IANS) Britain’s financial regulator on Monday said it has fined Bank of America’s Merrill Lynch unit £35m for failing to report nearly 69 million transactions over two years.
It is the first enforcement action taken by the regulator under rules introduced following the 2008 financial crisis, the BBC reported.
The fine was reduced by 30 per cent because the bank cooperated and agreed to settle at an early stage in the investigation, the Financial Conduct Authority said.
Merrill Lynch said it had alerted authorities as soon as it realised that it had failed to report the financial trades between February 2014 and February 2016.
The bank said it was “wholly committed” to following financial regulations.
The types of trades involved, known as derivatives, can create a “complex web of interdependence” that then make it difficult to identify risks, according to the watchdog.
Mark Steward, the FCA’s head of enforcement, said companies need to ensure their reporting systems worked properly.
“There needs to be a line in the sand. We will continue to take appropriate action against any firm that fails to meet requirements,” he said.
Merrill Lynch has improved its systems, a spokesperson for the bank said, adding that no clients were affected financially.
Earlier this month, Bank of America Merrill Lynch reported a 13 per cent increase in net profits to $5.6bn (£4.2bn) for the three months to September.