{"id":615,"date":"2009-12-17T10:08:18","date_gmt":"2009-12-17T15:08:18","guid":{"rendered":"http:\/\/www.commerciallawinternational.com\/?p=615"},"modified":"2009-12-17T10:08:18","modified_gmt":"2009-12-17T15:08:18","slug":"td-fined-7-million-in-the-uk","status":"publish","type":"post","link":"https:\/\/www.commerciallawinternational.com\/?p=615","title":{"rendered":"TD Fined \u00a37 Million In the UK"},"content":{"rendered":"

By: Ainsley Brown<\/em><\/p>\n

\"Verify
Verify Those Books<\/figcaption><\/figure>\n

The Toronto Dominion Bank <\/a>(TD), one of Canada\u2019s leading financial instructions has been fined \u00a37 million by the Financial Services Authority <\/a>(FSA).<\/p>\n

The FSA, charged with policing financial institutions in the UK, has imposed the fourth highest fine in its history on TD for repeatedly failing \u201cto follow established procedures in ensuring the trader\u2019s books were independently verified.\u201d According to the FSA TD failed to ensure that price valuations by one of its traders in its London based Credit Products Group of its Investment Banking division were accurate.<\/p>\n

There is no word yet on whether the trader in question was, is or will be subject to investigation. According to the Times the FSA declined to comment on whether these pricing issues were the result of a systematic scheme to falsify information or was just a mistake.<\/p>\n

The large fine, while not the largest \u2013 that distinction belongs to Royal Dutch Shell in 2004 with a whopping \u00a317 million for overstating its oil and natural gas reserves \u2013 was significant being TD\u2019s second violation. \u00a0The FSA fined TD back in 2007 \u00a3490,000 when fixed income trader Simon Brgnall created fictitious trades to hide significant losses. The \u00a317 million fine was imposed to send a message to TD and other financial institutions that repeated violations would not be tolerated by the FSA.<\/p>\n

The good news for TD, like there could be good news in this situation, is that due to its full co-operation with the FSA the fine was reduced from \u00a310 million to the current \u00a37 million.\u00a0 Despite the reduction in the fine, I wonder how financial markets on both sides of the Atlantic will respond to this news?<\/p>\n

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