RBS-owned insurers fined 2.17 mn over forged files

1/19/2012 12:40:01 PM

LONDON - Britain's financial regulator said Wednesday it had fined two insurers owned by state-rescued Royal Bank of Scotland a combined £2.17 million (2.6 million euros, $3.4 million) after they had forged files. The Financial Services Authority said in a statement that the fine was imposed "for failings by Direct Line and Churchill to prevent files that the FSA had requested from being improperly altered." "This is a serious breach," said Tracey McDermott, the FSA's acting director of enforcement and financial crime. "The firms failed to give clear instructions resulting in staff making inappropriate alterations with one individual even forging the signatures of colleagues." Paul Geddes, chief executive of RBS Insurance, said: "We very much regret the findings of the FSA investigation. "Although no customers were disadvantaged, we are very disappointed that we did not meet the standards we expect of ourselves and which the FSA expects of us." The case refers to files received by the FSA in April 2010.