Bank backed by disgraced Labour grandee Peter Mandelson fined £2million for ‘failing to act with integrity’
A bank backed by disgraced Labor grand aide Peter Mandelson has been fined £2 million for ‘failing to act with integrity’.
Bank of London and its parent group Oplyse Holdings have been fined after misleading regulators about its finances, including providing ‘fabricated documents’.
The Bank of England’s Prudential Regulation Authority (PRA) said it was the first time it had fined a firm for not conducting its business honestly.
The financial technology group was fined £2 million despite stating that the breaches warranted a £12 million penalty.
The PRA said the companies had shown that “such a penalty would cause serious financial distress” and therefore reduced the penalty.
The clearing bank was founded in 2021 at a valuation of £820 million, but has struggled financially in recent years, with losses rising to almost £24 million in 2024, according to its latest accounts.
Mandelson was the group’s vice chairman until 2024, when he left the boardroom after the fintech startup ran into trouble.
Peter Mandelson was deputy governor of the Bank of London until 2024
The PRA said today the bank misled the watchdog about its capital position, failed to act with integrity, failed to be open and cooperative and failed to maintain adequate financial resources.
‘Most seriously, this involved providing the PRA with various fabricated documents intended to present an inaccurate picture of the capital position,’ he said.
The regulatory breaches occurred between October 2021 and May 2024.
Bank of London’s current bosses said the breaches occurred under previous ownership and management.
The PRA did not accuse Mandelson of any wrongdoing.
Sam Woods, the Bank of England’s deputy governor of prudential regulation and chairman of the PRA, said: ‘Trust in banking in the UK requires all banks, regardless of their size, to communicate honestly and openly with the PRA.
‘Bank of London Group Limited and Oplyse Holdings Limited fell well below our standards, resulting in today’s penalty, which is the PRA’s first finding of a firm acting dishonestly.’
A spokesman for Bank of London said: ‘The bank accepts the PRA’s findings and regrets the failings identified.
‘As acknowledged in the last communication, since the change of ownership the Bank has changed its management team and invested heavily in processes and controls and engaged third parties to assist with their improvement activities.
‘The bank is implementing a comprehensive improvement program and continues to work to further strengthen its governance and risk management arrangements and financial and regulatory reporting controls.
‘The bank, its new management and investors are committed to an open, transparent and constructive relationship with the PRA and FCA.
‘The board and leadership team are confident that with these legacy issues resolved and the support of its investors, the Bank can continue to build confidence and return to growth in 2026.’
Bank of London was founded with great fanfare in 2021, aiming to disrupt the big four (NatWest, Lloyds, Barclays and HSBC).
However, it ran into trouble in September 2024 when it became the subject of a winding up petition filed by HM Revenue and Customs over unpaid tax.
Board members, including Mandelson, US private equity boss Harvey Schwartz and founder Anthony Watson, resigned in October 2024.
The former Labor Party member was sacked as Britain’s ambassador to the US last year over his relationship with convicted pedophile Jeffery Epstein.
He was arrested last month on suspicion of abuse of public office.
Mandelson, who resigned from Labor and the House of Lords, denies any wrongdoing.
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