LONDON, April 15, 2015 /PRNewswire/ -- BNY Mellon (NYSE:
BK) today issued the following statement regarding the findings of
a U.K. Financial Conduct Authority ("FCA") investigation into
compliance with relevant FCA Principles and U.K. Client Asset
Sourcebook ("CASS") rules during the period from November 2007 to August
2013:
"BNY Mellon has worked cooperatively with the FCA to address
issues related to our CASS compliance. As part of its resolution
with the FCA, BNY Mellon has agreed to pay a penalty of £126
million, including a discount which the FCA applied in recognition
of the Company's cooperative efforts to resolve the matter at an
early stage. This amount is fully covered by pre-existing legal
reserves. Importantly, BNY Mellon remained financially robust
throughout the relevant period and, as indicated by the FCA in its
Final Notice, no clients suffered any loss as a result of the
issues identified.
"Consistent with our commitment to being a strong and trusted
partner to our clients, BNY Mellon launched a broad internal review
with the assistance of an independent, third-party accounting firm
and external legal advisers immediately upon learning of these
issues. As a result, we have engaged in a remediation process and
have taken clear steps to put in place a framework of new and
improved policies and operational procedures as well as enhance our
specialist resources across many functions to reinforce our
compliance with CASS rules.
"BNY Mellon is very mindful of the importance of safeguarding
client assets and has been trusted by its clients to do so for 230
years. This trust could not have been earned without robust
regulatory compliance in all of our operating jurisdictions, and we
regret in this case that we did not meet our standards or those of
the FCA. As always, regulatory compliance remains a key area of
focus as we maintain our track record of safety and soundness as a
financial institution."
Contacts:
Media
Louisa Bartoszek
+44 (0) 20 7163 2826
louisa.bartoszek@bnymellon.com
Kevin Heine
+1 212 635 1590
kevin.heine@bnymellon.com
Analysts
Valerie Haertel
+1 212 635 8529
valerie.haertel@bnymellon.com
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