FSA fines Toronto Dominion Bank $11.3m

21 December 2009

Toronto Dominion Bank has been fined $11.3 million by regulators in London for repeated systems and controls failings.

The fine - which is the fourth largest ever levied by the UK's Financial Services Authority (FSA) - relates to the pricing of sophisticated financial products.

An FSA investigation, which focused on Toronto Dominion's Credit Products Group, uncovered pricing issues on a proprietary trader's books.

The bank, which saw its fine cut from $16.1 million because it co-operated fully with the inquiry, was found not to have the correct controls in place to detect pricing issues.

Toronto Dominion Bank was fined $791,000 for systems and controls failings in November 2007 and Margaret Cole, director of enforcement and financial crime at the FSA, said the size of the latest fine showed how seriously repeat offences are considered.

She added: "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."

In November the FSA fined Nomura International $2.8 million for systems and controls failings in its International Equity Derivatives division.

Written by Gary Cooper

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