The Bank of England’s banking watchdog has imposed a £2 million fine on the Bank of London and its parent company, Oplyse Holdings, for "failing to act with integrity" and misleading the regulator regarding its financial position.
The Prudential Regulation Authority (PRA) stated this marks the first instance it has penalised a firm specifically for failing to conduct its business with integrity.
While the breaches were deemed to warrant a significantly higher penalty of £12 million, the PRA reduced the fine to £2 million after the companies demonstrated that "such a penalty would cause serious financial hardship."
The clearing bank, launched in 2021 with an initial valuation of $1.1 billion (£820 million), has faced considerable financial difficulties in recent years. Its latest accounts reveal widening losses, reaching almost £24 million in 2024.
Notably, former Labour grandee Peter Mandelson served on the group’s board of directors until 2024.
The PRA detailed on Tuesday that the bank had misled the watchdog concerning its capital position, failed to uphold integrity, neglected to be open and cooperative, and did not maintain adequate financial resources.
The regulatory breaches occurred between October 2021 and May 2024.
Bosses at The Bank of London said the breaches took place under previous ownership and management.
Sam Woods, deputy governor for prudential regulation at the Bank of England and chief executive 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 spokesman for the Bank of London said: “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.”
