Bank of England's Prudential Regulation Authority fines HDI Global SE GBP 4.165 million for repeated incorrect FSCS data submissions

The Bank of England's Prudential Regulation Authority has fined HDI Global SE GBP 4.165 million for submitting incorrect regulatory data on multiple occasions between August 2021 and August 2024. The failures concerned Financial Services Compensation Scheme liabilities and FSCS fee tariff data, including inaccurate information submitted as part of attempts to remediate earlier errors. The PRA found that the firm breached Fundamental Rule 2 on due skill, care and diligence and Fundamental Rule 6 on responsible and effective organisation and control of its affairs. The PRA said the misreporting arose because HDI Global SE did not correctly apply the PRA Rulebook and guidance on which liabilities are covered by the FSCS and how components of the tariff data should be calculated. Before summer 2023, the firm lacked effective written processes for producing the calculations and showed weak accountability, internal oversight and challenge, which led to inaccurate submissions. The PRA noted that inaccurate FSCS liabilities data can impair its ability to identify material risks and can also cause a firm to underpay any applicable FSCS levy. HDI Global SE has since implemented remediation measures, submitted corrected historical data and paid additional FSCS levies required to date. The penalty reflects a 30% reduction under the Early Account Scheme and settlement, from an amount that otherwise would have been GBP 5.95 million.