The Financial Sector Conduct Authority (Authority) has imposed an administrative penalty of R100 000 on Absa Bank Limited Over the Counter Derivatives Provider (ODP) after it failed to meet a licence condition.
FSCA said the penalty was payable within 30 days from the date of the order.
The FSCA said Absa ODP was granted a licence to operate as an ODP in September 2020.
“One of the conditions of the licence stipulated that an ODP must submit a report from its independent auditors regarding its systems, processes, procedures and capacity to report all its OTC derivatives transactions to the authority, within six months of licensing, there-after annually,” it said.
The authority said Absa ODP did not submit the independent audit report on March 1, leading it to contravene the licence condition.
“It is worth noting that Absa ODP was made aware of this requirement in 2019. In the determination of the enforcement action, the authority also considered the fact that Absa ODP did not request an extension to comply with this licence condition,” it said.
The FSCA said Absa ODP accepted the administrative penalty, and it was satisfied with the outcome of the matter.
BUSINESS REPORT ONLINE