FSA has fined GSI £17.5 million for breaching Principles 2 and 3. It found the firm did not have in place adequate systems and controls to enable it to comply with its UK regulatory reporting obligations. This resulted from a lack of information sharing between it and its US affiliate in relation to an SEC investigation involving the affiliate. FSA said GSI's systems did not allow it to consider whether any notifications needed to be made to FSA. FSA noted the firm did not set out to hide anything and it co-operated fully with FSA to receive a 30% discount on the fine.