01 · In plain English
What happened.
The Governor and Company of the Bank of Scotland was fined £750,000 by the Financial Services Authority (FSA) in a Final Notice dated 5 February 2003 for failures in its PEP and ISA Department. Between November 1999 and August 2001 the firm’s implementation of its LISA PEP and ISA computer system, and the transfer of PEP customers’ accounts into that system (together with management failings), meant it could not reconcile the cash it held for PEP and ISA customers or state accurately how much customer money it held.
Summarised from the FSA's notice and press reports. The official text and documents below are the authoritative record.
02 · Enforcement details
What the FCA register says.
By a Final Notice dated 5 February 2003, the Governer and Company of the Bank of Scotland was fined £750,000 by the FSA. The fine was imposed as a result of the failure of its PEP and ISA Department to administer customer funds appropriately. These breaches related specifically to the firm's failings in the implementation of its LISA PEP and ISA computer system and the transfer of its PEP customers' accounts to that system and in the managementof its PEP and ISA Department. They meant that, throughout the period between November 1999 and August 2001, the firm was unable to reconcile properly the cash it was holding on behalf of its PEP and ISA customers or, therefore, to state accurately how much money it was holding on behalf of those customers.
03 · Firm details
Firm on the FCA register.
- Firm name
- Bank of Scotland plc
- Firm reference number
- 169628
- Register status
- Authorised
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