PRA Fines HDI Global SE £4.165M for FSCS Data Misreporting

The Prudential Regulation Authority (PRA) has fined HDI Global SE £4,165,000 for submitting incorrect Financial Services Compensation Scheme (FSCS) data between August 2021 and August 2024. The errors included misreported FSCS Liabilities and Fee Tariff data, which could hinder risk identification and lead to underpayment of levies. The firm failed to apply due skill, care, and diligence, lacked effective written processes, and had inadequate oversight. HDI Global SE participated in the Early Account Scheme (EAS), providing a detailed account that assisted the PRA's investigation, resulting in a 30% penalty reduction from £5,950,000. The firm has since implemented remediation, submitted corrected data, and paid additional levies. Gareth Truran, Executive Director of Insurance Supervision, emphasized the importance of accurate data submissions for the PRA's safety and soundness objective. HDI Global SE, headquartered in Hanover, Germany, is regulated by the PRA and FCA in the UK. The PRA found breaches of Fundamental Rules 2 and 6.