The Prudential Regulation Authority (PRA), the Bank of England's prudential watchdog, has fined The Bank of London Group Limited and its parent Oplyse Holdings Limited £2 million for misleading the regulator over capital positions, failing to act with integrity, failing to be open and cooperative, and failing to maintain adequate financial resources. The PRA announced the penalty on March 24, 2026. This marks the first time the PRA has fined a firm explicitly for failing to conduct its business with integrity and the first enforcement action against a parent financial holding company.
DETAILED REGULATORY BREACHES
Between October 7, 2021, and May 22, 2024, The Bank of London Group Limited and Oplyse Holdings Limited failed to comply with their regulatory capital requirements over an extended period. The firms provided the PRA with several fabricated documents intended to provide a false picture of their capital position, while concealing a deteriorating solvency position.
The PRA's investigation revealed further lapses: the firms failed to be open and transparent with the regulator on numerous occasions, and they failed to manage or report a large exposure resulting from a loan from The Bank of London Group Limited to Oplyse Holdings Limited. These actions breached PRA Fundamental Rules 1, 3, 4 and 7. "Trust in banking in the UK requires integrity and open communication with the PRA from all banks, regardless of their size," said Sam Woods, Deputy Governor for Prudential Regulation and PRA Chief Executive Officer. "The Bank of London Group Limited and Oplyse Holdings Limited fell well below our standards, resulting in today’s penalty which marks the PRA’s first finding against a firm for acting without integrity."
Originally, the breaches warranted a £12 million penalty. However, the PRA reduced it to £2 million after the firms demonstrated that the full amount would cause serious financial hardship. The settlement was agreed upon by all parties.
BANK'S TURBULENT HISTORY
Launched in 2021 as a digital clearing bank, The Bank of London has faced financial difficulties. Its latest accounts show losses reaching almost £24 million in 2024.
The bank's spokesperson said the matters relate to a period when the bank was under previous ownership and management.
REMEDIATION UNDER NEW OWNERSHIP
A spokesperson for The Bank of London acknowledged the findings: "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 said it has been implementing a comprehensive remediation programme and is continuing work to strengthen its governance and risk management arrangements, and its financial and regulatory reporting controls.
"The Bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA," the spokesperson added. "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."
WIDER IMPLICATIONS FOR UK BANKING
By also fining the parent, the PRA took enforcement action against a parent financial holding company, rather than just the bank, for the first time.
The PRA reduced the penalty from £12 million because the firms showed that paying it in full would cause serious financial hardship.