News outlets are reporting that this morning, the Financial Conduct Authority in addition to the Serious Fraud Office is to levy a £235 million fine on Tesco Bank, because of irregularities with regards to Tesco Bank’s 2014 trading update which falsely predicted that profits that the bank was expecting to make.
Of the near £250 million pound fine, £129 million of that will go to the Serious Fraud Office, who announced that they had reached a deferred prosecution agreement with the bank.
Tesco bank was one of the financial institutions responsible for the mis-selling of payment protection insurance policies. Tesco has paid out nearly £250 million in ppi claims compensation since 2011.
citywire.co.uk had more to report on the Tesco fine.
A crown court hearing on 10 April will decide if the DPA should be approved.
The SFO said the DPA did not address whether liability can be attached to Tesco PLC or any of its employees or agents.
In a separate announcement the FCA said it has agreed a redress scheme for Tesco investors. The regulator said it expected this to cost the supermarket £85 million.
Overall, Tesco said it expects to take an exceptional charge of £235 million in connection to the fine, the compensation scheme and other costs associated with the case.
Dave Lewis, chief executive of Tesco, said the company co-operated fully with the FCA and SFO.
‘Over the last two and a half years, we have fully cooperated with this investigation into historic accounting practices, while at the same time fundamentally transforming our business,’ he said.
‘We sincerely regret the issues which occurred in 2014 and we are committed to doing everything we can to continue to restore trust in our business and brand.’