The FSA has fined the London branch of Société Générale £1.57m for failures in transaction reporting.
According to the regulator, the fine reflects the seriousness of Société Générale's failure to submit accurate reports for about 80% of its reportable transactions, across all asset classes, for over two years.
The FSA says fines go directly to funding its activities and help reduce its fees and levies on regulated firms in future years.
Firms are required by the regulator to submit data for reportable transactions by close of business the day after a trade is executed.
This data is used by the FSA to detect and investigate suspected market abuse including insider trading and market manipulation.
The regulator says Société Générale's London branch also breached FSA rules by failing to keep all relevant transaction reporting data.
Firms must keep all data related to financial transactions and make it available to the FSA for at least five years.
Between November 2007 and February 2010, the bank either failed to report, or inaccurately reported, 18.8 million of its 23.5 million reportable transactions.
These breaches occurred despite the FSA sending repeated reminders to firms of their obligations to provide accurate data and of the importance of compliance with the FSA rules on transaction reporting.
Margaret Cole, director of enforcement and financial crime, says: "Soc Gen failed to accurately report a very high proportion of its transactions for a significant length of time.
"This failure is a serious breach of our rules as it can have a damaging impact on our ability to detect and investigate suspected market abuse."
Société Générale has taken a number of steps to address the concerns raised including commissioning a formal review of its transaction reporting process and committing resources to improve its processes and resolve the errors.
The FSA says the bank co-operated fully with its investigation and agreed to settle at an early stage, and so qualified for a 30% discount. Without the discount, the fine would have been £2.25m.
