Bank of London fined £2m for multiple failings

24th Mar 2026 11:20

(Sharecast News) - The Bank of London Group has been fined £2m for misleading regulators over its capital positions and failing to act with integrity, it was announced on Tuesday.

The Bank of England's Prudential Regulation Authority also the found that the troubled clearing bank, along with parent company Oplyse Holdings, had failed to be open and cooperative with the regulator, and had not maintained adequate resources.

The failings occurred between October 2021 - a month before it officially launched - and May 2024.

It is first time the PRA has fined a firm for acting without integrity, and the first time it has taken enforcement action against a parent financial holding company as well.

The severity of the failings had warranted a higher financial penalty of £12m, the PRA added. However, the fine was reduced to £2m after Bank of London and Oplyse demonstrated the higher sum would cause "serious" financial hardship. Last year, Oplyse posted annual losses for 2023 of nearly £50m, its third straight year in the red.

Sam Woods, the BoE's deputy governor for prudential regulation and the PRA's chief executive, said Bank of London and Oplyse had fallen "well below our standards".

He continued: "Trust in banking requires integrity and open communication with the PRA from all banks, regardless of their size."

Founded in 2016 by Anthony Watson, the former chief information officer of Barclays' retail arm, the Bank of London received its banking licence in November 2021. A challenger to the Big Four UK banks, it boasted heavyweight board members such as Labour grandee Peter Mandelson and Goldman Sachs' Harvey Schwartz and was initially valued at more than $1bn.

Both men, who have not been accused of any wrongdoing by the PRA, quit in October 2024, after the UK tax authorities issued a winding-up order over an unpaid debt. The order was eventually withdrawn. Watson stepped down as chief executive at the same time.

The Bank of London said it accepted the PRA's findings "and regrets the failings identified".

A spokesperson continued: "The Bank has changed its management team and invested heavily in processes and controls and engaged third parties to assist in their remediation activity.

"The bank has been implementing a comprehensive remediation programme, and is continuing work to strengthen further its governance and risk management arrangements, and its financial and regulatory reporting controls."

They concluded: "The board and leadership team are confident that, with these legacy matters settled, and with the backing of its investors, the Bank will continue to enhance trust and be able to return to growth in 2026."

The holding company changed its name to Oplyse from Bank of London Group Holdings in March 2025.