Goldman Sachs International

On 22 October 2020, the PRA issued a Final Notice to Goldman Sachs International (“GSI”). For the reasons given in the notice, the PRA imposed a financial penalty of £48,308,400. GSI agreed to settle during the Discount Stage of the PRA’s investigation. As a result, GSI qualified for a 30% settlement discount under the PRA Settlement Policy. Were it not for this discount, the PRA would have imposed a financial penalty of £69,012,000. The PRA’s action took effect on 22 October 2020. A copy of the Final Notice can be found on the Bank of England’s website and can be accessed using the following link: PRA GSI Final Notice  

On 22 October 2020, the FCA has fined Goldman Sachs International. The reason for this action is because Goldman Sachs International breached Principles 2 and 3 of the Authority’s Principles for Business arising from risk management failures connected to 1Malaysia Development Berhad (1MDB) and its role in three fund raising transactions for 1MDB between 1 February 2012 and 3 February 2016. As a consequence of this action, the FCA has imposed a fine of £48,308,400 . Goldman Sachs International agreed to resolve this matter and qualified for a 30% (stage 1) discount under the Authority’s executive settlement procedures. Were it not for this discount, the Authority would have imposed a financial penalty of £69,012,000. The FCA’s action took effect on 22 October 2020 and a copy of the Final Notice is displayed on the FCA's web site here: https://www.fca.org.uk/publication/final-notices/gsi-2020.pdf

On 27 March 2019, the FCA has fined Goldman Sachs International. The reason for this action is because Goldman Sachs International breached SUP 17 between 5 November 2007 and 31 March 2017 and breached SUP 15 and Principle 3 between 5 November 2007 and 31 March 2015 in relation to its transaction reporting obligations. As a consequence of this action, the FCA has imposed a fine of £34,300,700. Goldman Sachs International agreed to resolve this matter and qualified for a 30% (stage 1) discount under the Authority’s executive settlement procedures. Were it not for this discount, the Authority would have imposed a financial penalty of £49,063,900. The FCA’s action took effect on 27 March 2019 and a copy of the Final Notice is displayed on the FCA's web site here: https://www.fca.org.uk/publication/final-notices/goldman-sachs-international-2019.pdf

On 9 September 2010, the FSA imposed a financial penalty on Goldman Sachs International (GSI or the Firm) of £17.5 million for breaches of Principles 2, 3 and 11 of the FSA's Principles for Businesses (the Principles) which occurred between July 2009 at the latest and 16 April 2010 (the Relevant Period). The firm breached Principle 11 by failing to inform the FSA, until 16 April 2010, that the staff of the United States Securities and Exchange Commission (SEC) had on 29 September 2009 served a Wells Notice indicating the SEC staff's proposal to recommend an enforcement action for serious violations of US securities law by an approved person employed by GSI relating to his prior activities when working in the US for Goldman, Sachs & Co. The firm breached Principles 2 and 3 by (i) failing to ensure that it had proper and effective systems and controls in place for the communication to GSI of information about regulatory investigations relating to other members of the Goldman Sachs Group, Inc. that might affect GSI, as a result of which GSI failed to consider providing the FSA with information concerning the SEC's investigation into the Abacus 2007-AC1 synthetic collateralised debt obligation, which Goldman, Sachs & Co. structured and which was marketed to sophisticated institutional investors, including by GSI from the UK; and (ii) failing to conduct its business with due skill, care and diligence with respect to its regulatory reporting obligations. The Firm settled at an early stage and qualified for a 30% discount. Without the discount the fine would have been £25 million.