The Prudential Regulation Authority has fined The Bank of London Group Limited and Oplyse Holdings Limited GBP 2 million for misleading regulators over their capital positions.
The enforcement action covers failures, including misleading the regulator, breaching capital requirements, and submitting fabricated documents. The PRA confirmed the fine on 24 March 2026, as the failings occurred between October 2021 and May 2024.
Fabricated documents and capital breaches
The PRA's investigation established that both entities repeatedly misled the regulator regarding their actual capital positions. Most critically, this included submitting fabricated documents designed to present a false picture of their financial standing. In addition, the firms failed to disclose their deteriorating solvency position, did not manage or report a large exposure arising from a loan between The Bank of London Group Limited and Oplyse Holdings Limited, and failed to maintain adequate financial resources throughout the period under review.
The original penalty calculated by the PRA amounted to GBP 12 million. The regulator reduced this to GBP 2 million after both firms demonstrated that a higher payment would cause serious financial hardship. The PRA and both entities have agreed to settle the matter.
A spokesperson of the bank provided an exclusive comment to The Paypers: `The Bank accepts the PRA’s findings and regrets the failings identified. As is acknowledged in the Final Notice, since the change in ownership, 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.' It was also mentioned that `The Bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA. 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.`
Regulatory firsts
The case carries significant precedent. It marks the first time the PRA has found a firm in breach of the requirement to conduct its business with integrity and the first instance of the PRA taking enforcement action against a parent financial holding company. A company official cited by the PRA noted that trust in the UK banking system depends on integrity and open communication from all banks, regardless of size.
In addition, the rule breaches confirmed by the PRA span multiple areas of the PRA Rulebook, including Fundamental Rules on integrity, prudence, financial resource adequacy, and open dealing with regulators. Additional violations cover capital reporting obligations, large exposure limits and reporting requirements, notification duties, and related party transaction rules under the Capital Requirements Regulation framework.
Oplyse Holdings Limited was separately found to have breached consolidated own funds reporting requirements applicable to parent financial holding companies.
