The industry regulator, the Financial Services Authority (FSA), has fined Bank of Scotland £750,000 for not administering clients’ funds appropriately.
Bank of Scotland suffered problems with their administrative systems between November 1999 and August 2001. The problems were categorised by the FSA as failing to control and lack of staff training.
The administrative failings meant that Bank of Scotland could not accurately tell how much money they were holding for PEP and ISA clients. As the FSA pointed out, this put customers at risk of losing money.
Bank of Scotland is said to have rectified the problems and are paying any compensation where necessary.
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