LLOY Lloyds Banking Group Plc

LONDON--The U.K. Financial Services Authority, or FSA, said Friday it has fined Bank of Scotland 4.2 million pounds for failures in its systems, resulting in inaccurate mortgage records for 250,000 of its customers.

MAIN FACTS:

-This was the result of mortgage information being held on two separate unaligned systems, and problems with two further processes where manual updates weren't always carried out.

-BOS agreed to settle with the FSA at an early stage of the investigation; without this early settlement and the firm's co-operation, the fine would have been GBP6 million.

-Write to Ian Walker at ian.walker@dowjones.com

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