The Prudential Regulation Authority has fined HDI Global SE GBP 4,165,000 for repeatedly submitting inaccurate regulatory returns relating to the Financial Services Compensation Scheme, according to a final notice announced by the Bank of England on 20 July 2026. The penalty was reduced from GBP 7,000,000, after a 15% discount for the firm's cooperation under the PRA's Early Account Scheme and a further 30% discount for settlement.
The PRA said the German insurer's UK operations had made multiple incorrect submissions of FSCS Liabilities and FSCS Fee Tariff returns between August 2021 and August 2024, which the PRA said may hinder its ability to identify material risks and may result in a firm underpaying its FSCS levy. The final notice sets out the timeline of the failings, the remediation the firm has undertaken and the basis for the penalty.
MULTIPLE ERRORS OVER THREE YEARS
According to the final notice, the breaches were recurrent and persisted over three years, including the continued provision of incorrect data after potential issues were first identified. The PRA found that HDI Global SE had failed to apply due skill, care and diligence in preparing the submissions and that, prior to the summer of 2023, it failed to check the PRA Rulebook or guidance on which liabilities are covered by the FSCS and how FSCS Fee Tariff Data should be calculated.
The Financial Services Compensation Scheme protects eligible policyholders and depositors when authorised firms fail, and FSCS Fee Tariff Data, which firms report to the FCA, is used to calculate their FSCS levy, while FSCS Liabilities data informs the PRA's supervision. Gareth Truran, Executive Director, Insurance Supervision, said: “The PRA relies on firms submitting accurate, complete and timely data to assess risks, monitor compliance, inform prudential decisions, and ensure that FSCS levies are correctly calculated.”
EARLY SETTLEMENT REDUCES PENALTY
HDI Global SE agreed to settle during the Discount Stage of the PRA's investigation, qualifying for a 30% discount on the financial penalty. Without that reduction the fine would have been GBP 5,950,000, the regulator said.
The PRA said HDI Global SE has implemented remediation initiatives, submitted corrected historical data and paid the additional levies required to date by the FSCS.
The Bank of England published the final notice, dated 16 July 2026, on its website. HDI Global SE is headquartered in Hanover, Germany, and has been authorised as a UK branch since 30 September 2021.
The PRA said that, as an authorised UK branch, the firm was subject to PRA supervision.
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