FSA fines Bank of Scotland £750,000

The FSA has fined the Bank of Scotland (BoS) £750,000 for the failure of its Pep/Isa department to administer customers' funds appropriately. This put 30,000 Pep and Isa customers at risk of losing money, according to the regulator. From November 1999 until August 2001 problems with BoS administration systems meant the bank could not be sure how much money it was holding on behalf of individual Isa and Pep customers. The FSA said the problems were caused by systemic failings in controls and inadequate staff training. BoS has now addressed this and is paying compensation where due.