The Bank of London (TBOL), a UK FinTech founded by a former Barclays executive, has been fined £2 million for misleading regulators regarding its capital position.

The firm, founded in 2021 by Anthony Watson, was found by the Prudential Regulatory Authority (PRA) to have breached over a dozen rules. The regulator fined the company for “failing to conduct its business with integrity”, marking the first time such a charge has resulted in a financial penalty.

The breaches occurred between October 2021 and May 2024 during Watson’s tenure as chief executive. Watson, who has since stepped down, told the Financial Times that he “noted” the PRA’s action.

TBOL reached a $1 billion upon its market entry, becoming the first pre-revenue bank to achieve unicorn status. The bank intended to compete with established clearing houses including Barclays and NatWest. Its board previously included Peter Mandelson and former Goldman Sachs executive Harvey Schwarts on its board.

Both Mandelson and Schwartz resigned following a subsequently withdrawn winding-up order issued to the bank in 2024 due to delayed tax payments. Neither man is accused of misconduct in relation to TBOL.

The PRA stated it would have imposed a £12 million fine, but reduced the figure to avoid causing serious financial hardship for the firm.

TBOL said in a statement: “The matters described in the notice relate to a period when the Bank was under previous ownership and management. The Bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA. 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.”

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