On July 24, the FCA published the final notice that it issued to The Royal Bank of Scotland plc and The Royal Bank of Scotland N.V. (together, RBS) on July 16.  Many of the problems at RBS detailed in the Notice arose as a result of significant system challenges posed by the takeover of ABN Amro Bank N.V. by The Royal Bank of Scotland plc.

RBS agreed to settle with the FCA at an early stage in their investigation and so qualified for a 30% reduction in the financial penalty imposed on them, from £8,029,100 to £5,620,300.  The FCA found that:

• Between November 5, 2007 and February 1, 2013 (the Relevant Period), RBS failed to accurately report approximately 44.8 million transactions; and
• Between November 5, 2007 and February 1, 2012, RBS failed entirely to report approximately 804,000 transactions that it executed.

This represents a failure in relation to 37% of transactions reportable by RBS during the Relevant Period.  The FCA regarded these failures by RBS to be particularly serious because (i) the FCA has provided significant guidance to firms on how to report and check those reports; and (ii) during the Relevant Period the FCA published a number of enforcement actions taken in relation to similar failings by other firms.  Final Notice.  Press Release.