A second fine has been slapped on a Canadian bank trading in London by the Financial Services Authority, a mere to years after the first heavy penalty.
On Thursday, the FSA fined Toronto Dominion a whopping 7 Million Pounds, which has been the regulator's fourth largest fine ever slapped on any organization, over "repeated systems and controls failings" for two years, which means that "inaccurate prices on a proprietary trader's books went undetected".
In July last year, Toronto Dominion was pushed to make a write-down worth C$96 Million (55 Million Pounds), after first traces of the problem were noticed. The bank had only managed to uncover some "pricing issues", post which the trader was made redundant and the book was passed on to another trader.
"When we uncover failings in a firm we expect them to put it right immediately and to take special care to ensure it does not happen again. Toronto Dominion clearly failed to apply proper controls in this area despite its previous sanction and repeat offenders need to know that they will face severe consequences", said Margaret Cole, the FSA's Director of Enforcement.
Because FSA voluntarily reported the incident to the regulator, it has been given a 30% discount on the total fine.