UK’ PRA Fined Standard Chartered Bank £46.5 Million for Regulatory Failures

Fazzaco learned that the Prudential Regulation Authority (PRA) has imposed a £46.5 million on Standard Chartered Bank (SCB) for failing to be open and cooperative with the PRA and for failings in its regulatory reporting governance and controls in relation to a tailored PRA liquidity expectation.

The PRA said that the fine is the highest ever imposed by it in a case where it was the sole enforcer. As detailed by the regulator, SCB made five errors reporting its liquidity metric between March 2018 and May 2019, meaning the regulator did not have a reliable overview of the bank's liquidity position.

SCB agreed to resolve this matter and therefore qualified for a 30% reduction in the fine imposed by the PRA. Without this discount, the fine imposed by the PRA would have been £66,500,000.

"We expect firms to notify us promptly of any material issues with their regulatory reporting, which Standard Chartered failed to do in this case. Standard Chartered's systems, controls and oversight fell significantly below the standards we expect of a systemically important bank, and this is reflected in the size of the fine in this case,"Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA said.