The fine represents the second highest penalty ever imposed by the financial watchdog, which said
In a statement, the PRA said that among its failings, the
The scheme protects up to £85,000 per eligible depositor if their bank fails. Under the FSCS, lenders must have systems to help regulators identify deposits that would be eligible for protection.
"It is vital that all banks comply fully with our requirements around preparedness for resolution," he added. "HBEU fell far short of its obligations in this area, and failed to disclose its failings to us in a timely manner. These failures led to today's action, including the significant fine."
Among the charge sheet laid out by the PRA today were a failure to assign clear ownership for the processes required under the depositor protection rules, and the failure to ensure that a senior manager was allocated responsibility for these processes.
The fine, initially £96.5m, was slashed by 15 per cent due to
Only Credit Suisse has faced a bigger penalty from the watchdog when it was hit with a £87m charge over risk and governance failings last year.
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