In Lloyds Banking Group’s interim report last week, the firm detailed how the FSA has commenced enforcement proceedings against Bank of Scotland.

The report reads: “In 2009 the FSA commenced a supervisory review into HBOS. The supervisory review has now been superseded as the FSA has commenced enforcement proceedings against Bank of Scotland plc in relation to its corporate division pre-2009.

“The proceedings are ongoing and the Group is co-operating fully. It is too early to predict the outcome or estimate reliably any potential financial effects of the enforcement proceedings but they are not currently expected to be material.”

Enforcement proceedings are more detailed than ordinary supervisory investigations and can result in fines or penalties if wrongdoing is discovered.

The HBOS investigation was revealed last month when the Treasury Select Committee published a letter from the FSA which said the FSA intended to publish a report into the failings of HBOS.

FSA chairman Lord Turner said the review into HBOS should be published as it is in the public interest.

He said: “Our judgement is that the public’s legitimate interest in understanding the key drivers of the 2008 financial crisis will be effectively served by publication of the report.”

The report is to be published regardless of the result of the enforcement action.