PRA hits The Bank of London with £2 million penalty for “failing to act with integrity”

The PRA has fined The Bank of London Group Limited and its parent Oplyse Holdings Limited £2 million for misleading the regulator about their capital position and “failing to act with integrity.”

What the PRA found

• Between October 2021 and May 2024, the group repeatedly failed to meet regulatory capital requirements and misled the PRA about its actual capital position.

• The bank provided fabricated documents to the PRA that created a false picture of its capital position.

• The PRA found breaches of Fundamental Rule 1 (integrity), Rule 3 (prudence), Rule 4 (adequate financial resources), and Rule 7 (open and cooperative dealing with the regulator).

• The firms also failed to manage or report a large exposure arising from a loan from The Bank of London Group to Oplyse Holdings.

Size of penalty and hardship discount

• The PRA calculated that the seriousness of the breaches warranted a £12 million penalty.

• After the firms demonstrated that paying £12 million would cause “serious financial hardship,” the PRA reduced the penalty to £2 million.

Why this case is notable

• This is the first time the PRA has fined a firm for failing to conduct its business with integrity under its Fundamental Rules.

• It is also the first PRA enforcement action against a parent financial holding company (Oplyse Holdings) under its specific FHC powers.

• Sam Woods (Deputy Governor for Prudential Regulation and PRA CEO) explicitly framed it as a standards-setting case on integrity and openness in dealings with the PRA.

Firm’s response and current position

• The Bank of London and Oplyse have accepted the PRA’s findings and agreed to settle the case.

• The bank has said the failings occurred under previous ownership and management, and that since the change in ownership it has overhauled management, invested in processes and controls, and engaged third parties to support remediation.