Societe Generale fined £1.57m for poor transaction reporting

26 August 2010

The Financial Services Authority (FSA) has fined Societe Generale (SocGen) for failings in its transaction reporting.

According to the regulator, the French financial institution did not provide accurate reports for an estimated 80 per cent of transactions between November 2007 and February 2010.

The failings applied to approximately 18.8 million reportable transactions out of 23.5 million which occurred during the period, the FSA explained.

SocGen did not retain reporting data despite being required to keep records of any transactions for up to five years under financial law.

Margaret Cole, director of enforcement and financial crime, said: “SocGen failed to accurately report a very high proportion of its transactions for a significant length of time. This failure is a serious breach of our rules as it can have a damaging impact on our ability to detect and investigate suspected market abuse.

"Firms and their management must ensure they submit quality transaction reporting data and we encourage all firms to review the integrity of this data on a regular basis."

The FSA added that the French bank failed to comply with its requests, despite repeated requests.

SocGen is the sixth institution to be issued with a fine in relation to reporting failures in the past year.

Credit Suisse, Barclays and Commerzbank have all been penalised for inaccurate reporting since August 2009.

By Jim Ottewill

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