According to the FCA, UBS “failed to ensure it provided complete and accurate information in relation to approximately 86.67 million reportable transactions”. The regulator said the bank also “erroneously reported 49.1 million transactions” which were not reportable.
Over a period of nine and a half years, UBS breached FCA rules by making 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 the bank’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 regulator were accurate and complete.
UBS agreed to resolve the case and so qualified for a 30% discount in the overall penalty. Without this discount, the FCA would have imposed a financial penalty of £39,427,795.
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.”
A spokesperson for UBS added: “We are pleased to have resolved this MiFID I legacy matter. Although there was never any impact on clients, investors or market users the bank has made significant investments to enhance its transaction reporting systems and controls.“