The Bank of England's Prudential Regulation Authority (PRA) has fined the Bank of London and its parent company Oplyse Holdings £2 million for failing to act with integrity and misleading the regulator about its financial position. The PRA said this is the first time it has penalised a firm specifically for lacking integrity.
The fine was reduced from an initial £12 million after the companies demonstrated that the higher penalty would cause serious financial hardship. The clearing bank, launched in 2021 with a valuation of $1.1 billion, has faced significant financial difficulties, with losses widening to nearly £24 million in 2024.
The PRA detailed that the bank misled the watchdog about its capital position, failed to be open and cooperative, and did not maintain adequate financial resources. The breaches occurred between October 2021 and May 2024. Former Labour figure Peter Mandelson served on the board until 2024.
Sam Woods, deputy governor for prudential regulation and PRA chief executive, 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.'
A Bank of London spokesman said the bank accepts the findings and regrets the failings, noting that the breaches occurred under previous ownership and management. The bank has since changed its management team, invested in processes and controls, and is implementing a remediation programme. It expressed confidence in returning to growth by 2026 with investor backing.
