Bank of London hit with £2m fine for ‘misleading’ watchdog
The Bank of London has been slapped with a hefty fine from the banking watchdog after “misleading” the regulator and “failing to act with integrity”.
The embattled fintech and its parent company Oplyse Holdings are on the hook for £2m after the watchdog found it failed to be open regarding its capital position.
It marks the first time the Prudential Regulation Authority has fined a firm for failing to conduct its business with integrity and also the first time the regulator has taken enforcement action against a parent financial holding company.
Sam Woods, chief executive of the PRA, said: “Trust in banking in the UK requires integrity and open communication with the PRA from all banks, regardless of their size.
“The Bank of London Group Limited and Oplyse Holdings Limited fell well below our standards, resulting in today’s penalty”.
Bank of London failed to be open with watchdog
The watchdog’s investigation between 7 October 2021 and 22 May 2024 found that the Bank of London “repeatedly misled the PRA as to their capital positions” including providing several fabricated documents “intended to provide a false picture of the capital position”.
The firm was also scathed for failure in being open with the regulatory on its “deteriorating solvency position”.
The bank underwent a change in ownership and control in late 2024, with a new investor group led by Mangrove Capital Partners taking the helm.
In October 2024, the disgraced Peter Mandelson resigned from his position on the Bank of London’s board following a slew of controversy at the fintech that included a HMRC winding-up petition.
The firm recieved it banking licence in November 2021, making it the second new clearing bank in more than 250 years, following the launch of rival Clearbank.
The bank’s founder Anthony Watson – who has donated nearly £500,000 to the Labour party and politicians since 2015, was appointed chair of Labour’s “business and enterprise advisory council” in 2016.
Watson stepped down as chief executive in September 2024.
A spokesperson for the Bank of London said: “The bank has been implementing a comprehensive remediation programme, and is continuing work to strengthen further its governance and risk management arrangements, and its financial and regulatory reporting controls.
“The bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA.”