Metro Bank fined £10 million

The FCA has also published Decision Notices for two of its former executive directors, however these have been referred to the Upper Tribunal, which will determine whether to uphold the FCA’s decisions against the two individuals or not, following a hearing.

The fine comes from an inaccurate RWA (Risk Weighted Assets) report in October 2018. As part of its quarterly financial results, Metro Bank regularly reported to the market on its prudential position, including its RWA, on which its regulatory capital requirements are based. Metro Bank published incorrect information concerning its RWA figure in its third quarter trading update (the October Announcement) on 24 October 2018.

Mark Steward, executive director of enforcement and market oversight, said: ’Listed firms must ensure that the information they are disclosing to the market is right. This is what investors are entitled to receive.’

According to the FCA, Metro Bank was aware at the time that this figure was wrong and failed to qualify it or explain in the October Announcement that it was subject to an ongoing review and would require a substantial correction. Metro Bank also failed to consider, and to seek legal advice on, whether the incorrect RWA figure ought to be qualified or explained in the October Announcement. As a result, Metro Bank failed to take reasonable care to ensure that the October Announcement was not false and misleading and did not omit relevant information.

The news comes just days after the FCA announced it gave Santander UK a £107.7 million fine for repeated anti-money laundering failures.