Bank of London Discloses Investigation by UK’s Prudential Regulation Authority

FinTech company Bank of London is reportedly being investigated by the Bank of England’s Prudential Regulation Authority (PRA) for unspecified “historic” events and for inaccurate record-keeping, lax regulatory reporting and governance failures.

The company disclosed this in financial accounts filed Wednesday (May 14), the Financial Times (FT) reported Wednesday.

The financial accounts were filed seven months late, were qualified by auditors due to “inadequate historical records” about an employee share option plan, and noted the auditors’ concerns about whether the company will be able to access an adequate amount of new funds, execute its business plans and manage any “punitive outcomes” from the investigation, according to the report.

Bank of London is cooperating with the PRA as well as conducting its own investigation, per the report.

“These accounts relate to a financial year in which the Bank operated under entirely different leadership,” a Bank of London spokesperson told PYMNTS in an emailed statement, noting the firm has “embarked on a comprehensive transformation.”

The statement continued: “This transformation has seen the Bank’s governance greatly strengthened with a reconstituted Board designed for robust oversight and strategic leadership; a new executive team with a new CEO, CFO, CRO and Chief of Staff & Transformation now in place; a refined strategy focused on the UK payments market; the development of a forward-looking technology roadmap delivering smarter, more secure business banking solutions; and enhanced products and services standards built to meet the evolving needs of businesses.”

Bank of London said in a Jan. 20 press release that it appointed a new CEO, Christopher Horne; was under new ownership led by Mangrove Capital Partners; and was working to drive “transformation and growth.”

Horne, a former CEO of Credit Suisse’s U.K. subsidiaries, said in the release: “I am honored to lead The Bank of London at such a pivotal time. This is a unique opportunity to redefine what a bank can be — resilient, innovative and aligned with the evolving needs of our clients and stakeholders. Together with the talented team at TBOL, I look forward to building a future that inspires trust and delivers lasting value.”

Weeks earlier, Bank of London announced in a Dec. 5 press release that it appointed new directors, including a chair, a chair of the board risk committee, a chair of the audit committee, and an independent non-executive director, to “strengthen governance and oversight.”

Mangrove Capital Partners CEO Mark Tluszcz said in the release: “These appointments demonstrate the commitment we, and the other investors that form the Mangrove-led new ownership group, have made to the Bank of London. They underscore the priority we place on strong governance and oversight.”

It was reported in September that Bank of London said it had caught up on all its tax payments after internal miscommunication caused a delay.