The Prudential Regulation Authority (PRA) has fined The Bank of London Group Limited and Oplyse Holdings Limited (formerly The Bank of London Group Holdings Limited) £2m for misleading the PRA over their capital positions.
The PRA said the companies failed to act with integrity, failed to be open and cooperative with the regulator and failed to maintain adequate financial resources.
The PRA said the fine would have been as high as £12m but Bank of London said the fine would have caused "serious financial hardship" so was reduced to £2m.
Oplyse Holdings Limited is the parent company of Bank of London.
Bank of London works with a number of key client groups including other banks, non-financial institutions, insurers, solicitors and financial intermediaries, including wealth managers where it provides solutions for regulated client money management.
The PRA says this is first time the PRA has fined a firm for failing to conduct its business with integrity. It is also the first time the PRA has taken enforcement action against a parent financial holding company of a firm.
The failings occurred between October 2021 and May 2024.
A PRA investigation found that between 7 October 2021 and 22 May 2024 the Bank of London Group Limited and Oplyse Holdings Limited:
- failed to comply with their regulatory capital requirements over an extended period;
- repeatedly misled the PRA as to their actual capital positions. Most seriously, this included providing the PRA with several fabricated documents intended to provide a false picture of the capital position;
- failed to be open and transparent with the regulator on numerous further occasions, including in relation to their deteriorating solvency position
- failed to act in a prudent manner, including failing to manage or report a large exposure resulting from a loan from the Bank of London Group Limited to Oplyse Holdings Limited.
Sam Woods, deputy governor for prudential regulation and CEO 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 which marks the PRA’s first finding against a firm for acting without integrity.”
A spokesperson for Bank of London said in a statement today: "The Bank of London Group Limited and its parent company Oplyse Holdings Limited acknowledge the PRA’s Final Notice published today, imposing a £2m financial penalty in respect of the regulatory breaches that occurred between 7 October 2021 and 22 May 2024. The matters described in the notice relate to a period when the Bank was under previous ownership and management.
"The Bank accepts the PRA’s findings and regrets the failings identified. As is acknowledged in the Final Notice, since the change in ownership, the Bank has changed its management team and invested heavily in processes and controls and engaged third parties to assist in their remediation activity. 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. The board and leadership team are confident that, with these legacy matters settled and with the backing of its investors, the Bank will continue to enhance trust and be able to return to growth in 2026.”