The Financial Services Authority (FSA) has fined Goldman Sachs International £17.5 million for breaching its principles with regards to reporting obligations.
FSA investigations - which began in August 2008 - revealed that the London-based company had failed to ensure that it had adequate systems and controls in place to enable it to comply with the regulatory body's rules and regulations.
Consequently, Goldman Sachs did not notify the FSA - which was granted its regulatory powers in the Financial Services and Markets Act 2000 - of matters relating to the United States Securities and Exchange Commission's 2007 investigation into the firm's Abacus debt obligation.
All firms that are authorised in practice by the FSA are legally bound to disclose any relevant information about such procedures to the independent body, as otherwise they are subject to fines and suspensions.
Margaret Cole, managing director of enforcement and crime at the FSA, said that although Goldman Sachs did not seek to hide anything from the organisation, its "quality of communications with the FSA fell far below what we expect from an authorised firm".
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Posted by Daniel Stevens