A systems failure that resulted in the creation of inaccurate mortgage records at the Bank of Scotland has resulted in a £4.2 million fine from the FSA.

Inaccurate records had been relied upon from 2004 to 2011 and had resulted from two unaligned systems and a failure to implement manual updates.

FSA director of enforcement and financial crime, Tracey McDermott, said: "These mistakes stemmed from the fact that Bank of Scotland had an inadequate mortgage records system” adding “This breach is particularly serious because the inaccuracies built up over a period of seven years. There was no structure in place to identify errors as they occurred and no checking procedures thereafter.”