The PRA has fined HDI Global SE £4.165 million for repeatedly submitting inaccurate FSCS liability and levy data between August 2021 and August 2024, citing weaknesses in controls, accountability and oversight.
PRA Fines HDI Global SE £4.165 Million
The UK Prudential Regulation Authority (PRA) issued a press release on 20 July 2026 announcing a £4,165,000 fine against insurer HDI Global SE for submitting inaccurate data to the PRA. According to the enforcement decision, the errors occurred repeatedly between August 2021 and August 2024, including instances in which the company submitted further inaccurate data while claiming to have corrected earlier errors.
The data concerned Financial Services Compensation Scheme (FSCS) liabilities and FSCS levy tariff data. The PRA stated that inaccurate reporting of FSCS liabilities could impede its ability to identify material risks and could also result in a firm paying less than its required FSCS levy.
(Source: Bank of England / PRA press release; published: 2026-07-20.)
Causes of the Breaches Identified by the PRA
According to the enforcement decision, HDI Global SE’s data errors arose and persisted because the company failed to exercise due skill, care and diligence to ensure that its calculations were accurate. The PRA identified the following specific deficiencies:
Before summer 2023, the company did not consult the PRA Rulebook or relevant guidance to confirm which liabilities were covered by the FSCS or how the individual components of FSCS levy tariff data should be calculated
It lacked effective written procedures capable of ensuring that the relevant calculations met a reliable standard
Accountability arrangements were unclear
Internal oversight and challenge mechanisms were absent
The PRA concluded that these circumstances reflected deficiencies in the company’s ability to organise and control its affairs responsibly and effectively and directly resulted in inaccurate data being provided to the regulator.
Fine Calculation and Discount Arrangements
Reduction for Early Settlement
The PRA allowed HDI Global SE to participate in its early settlement scheme (EAS). The company provided a detailed and comprehensive account of the facts and circumstances that led to the breaches. The PRA determined that this materially assisted its investigation and took the assistance into account when calculating the penalty.
The fine was calculated as follows:
The PRA determined a base penalty of £5,950,000 based on the circumstances of the breaches;
HDI Global SE agreed to settle, triggering the discount available under the early settlement scheme;
A 30% reduction was applied;
The final penalty was set at £4,165,000.
| Item | Data | Period | Details |
|---|---|---|---|
| Period of breaches | Multiple instances of inaccurate reporting | August 2021 to August 2024 | Included errors in data submitted as corrections |
| Failure to consult the Rulebook | PRA Rulebook and guidance were not consulted | Before summer 2023 | Concerned the scope of FSCS liabilities and calculation methods |
| Base penalty | £5,950,000 | Announced on 2026-07-20 | Amount before the settlement discount |
| Final penalty | £4,165,000 | Announced on 2026-07-20 | Amount after the 30% settlement discount |
Remedial Measures Taken by the Company
The PRA confirmed in its press release that HDI Global SE had implemented several remedial measures, including:
Submitting corrected historical data
Paying the additional amounts requested by the FSCS to date to rectify errors in its FSCS levy tariff data
Regulatory Position
Gareth Truran, Executive Director of Insurance Supervision at the PRA, commented on the regulatory significance of the enforcement action.
“The PRA relies on firms submitting accurate, complete and timely data to assess risks, monitor compliance, inform prudential decisions and ensure that Financial Services Compensation Scheme levies are calculated correctly. Firms must maintain effective systems and controls to ensure the integrity of their data submissions. This is essential to achieving the PRA’s safety and soundness objective.”
The statement addresses two aspects of regulatory reporting: the accuracy, completeness and timeliness of the data itself, and the systems and controls that firms must maintain to protect data integrity. The accuracy of FSCS levy tariff data directly affects how compensation scheme costs are allocated among member firms, meaning that the consequences of inaccurate reporting extend beyond the compliance position of an individual company.
(Source: Bank of England / PRA, written statement by Gareth Truran; published: 2026-07-20.)
Questions About the PRA’s Fine Against HDI Global SE
How much was HDI Global SE fined?
The final penalty was £4,165,000. Without the settlement discount, the fine would have been £5,950,000.
How long did the breaches continue?
The data errors occurred repeatedly between August 2021 and August 2024, including instances in which data submitted to correct earlier errors remained inaccurate.
What types of data were inaccurate?
The errors concerned Financial Services Compensation Scheme liabilities and FSCS levy tariff data. The PRA stated that inaccurate reporting of FSCS liabilities could hinder the regulator’s ability to identify material risks and could result in the company paying less than the amount it owed.
What were the principal problems identified by the PRA?
Before summer 2023, the company had not consulted the PRA Rulebook or relevant guidance. It also lacked reliable written calculation procedures, had unclear accountability arrangements and did not maintain adequate internal oversight and challenge mechanisms.
Why was the fine reduced by 30%?
The PRA allowed the company to participate in its early settlement scheme. Its detailed account materially assisted the investigation and, together with its agreement to settle, resulted in a 30% reduction in the penalty.
What remedial measures did the company take?
It implemented several remedial measures, submitted corrected historical data and paid the additional amounts requested by the FSCS to rectify errors in its levy tariff data.
Why is FSCS data important?
The data is used to assess risks, monitor compliance, support prudential decisions and calculate compensation scheme levies correctly, including how those costs are allocated among member firms.
