Corporate fiduciary fine for Goldman Sachs

A corporate fiduciary fine of £17.5 million has been levied at Goldman Sachs International for failure to provide the Financial Services Authority (FSA) with appropriate information relating to reporting obligations.

The corporate banking giant did not ensure it had systems and controls in place to comply with UK regulations, meaning the group did not inform the FSA of an investigation by the United States Securities and Exchange Commission investigation into the Abacus 2007-AC1 synthetic collateralised debt obligation.

Corporate fiduciary has been a sensitive subject since a banking collapse in 2008 contributed to the global economic downturn, with many companies making efforts to improve their own fiduciary systems and ensure compliance with those of independent bodies.

Margaret Cole, managing director of enforcement and financial crime, stated: "We have repeatedly stressed the importance of ... self-reporting regulatory issues," adding: "Defective systems and controls meant that the level and quality of communications ... fell far below what we expect of an authorised firm." ADNFCR-2318-ID-800058242-ADNFCR