The Prudential Regulation Authority (PRA) announced the fine of 2 million pounds ($2.6 million) against the bank and its parent company Oplyse Holdings Limited on Tuesday (March 24) for misleading the regulator about its capital position, “failing to act with integrity,” failing to maintain adequate financial resources, and “failing to be open and cooperative” with the financial watchdog.
The PRA’s notice says that the violations occurred between October of 2021 and May of 2024 and that the bank has since changed ownership and replaced most of the senior leadership from the period in question.
“Trust in banking in the UK requires integrity and open communication with the PRA from all banks, regardless of their size,” said Sam Woods, the PRA’s chief executive.
“The Bank of London Group Limited and Oplyse Holdings Limited fell well below our standards, resulting in today’s penalty which marks the PRA’s first finding against a firm for acting without integrity,” Woods added.
The PRA, an arm of the Bank of England, noted that this is also its first ever enforcement against a firm’s parent financial holding company.
In a statement provided to PYMNTS, the Bank of London said it accepts the finding and “regrets the failings identified,” while also stressing the change in ownership and management.
“The bank has been implementing a comprehensive remediation program, and is continuing work to strengthen further its governance and risk management arrangements, and its financial and regulatory reporting controls,” the statement said.
“The bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA,” the statement added, in reference to England’s Financial Conduct Authority.
According to the PRA, an investigation found that between October of 2021 and May of 2024, the Bank of London and Oplyse failed to comply with capital requirements and misled the regulator about its actual capital positions.
“Most seriously, this included providing the PRA with several fabricated documents intended to provide a false picture of the capital position,” the regulator said.
The PRA said the breaches in question warranted penalties of 12 million pounds ($16 million), though the regulator reduced that number when the bank showed this penalty would cause “serious financial hardship.”
News that the Bank of London was under investigation by the PRA first surfaced last year, with the bank telling PYMNTS then that the probe covered a time period in which it “operated under entirely different leadership.”