LONDON (AP) - Britain's financial regulator hit Goldman Sachs International with a £17.5 million ($27 million) fine yesterday for failing to notify UK authorities about an investigation in the US.

It was the second-largest fine ever imposed by the Financial Services Authority (FSA), eclipsed only by the £33.32 million fine announced in June against JP Morgan Securities Ltd. for mishandling clients' funds.

The British agency's investigation began in April after the US Securities and Exchange Commission (SEC) filed civil fraud charges against Goldman Sachs for allegedly misleading buyers of complex mortgage-related investments in 2007. Goldman settled the charges in mid-July by agreeing to pay $550 million - the largest penalty against a Wall Street firm in the SEC's history.

The mortgage securities at issue in the SEC case cost two European banks that bought them nearly $1 billion while allegedly helping Goldman client Paulson & Co., a hedge fund, capitalize on the housing bust by betting on them to fail.

Goldman failed to tell the FSA that the SEC had issued a Wells Notice, formally notifying the company and London-based executive Fabrice Tourre that they were under investigation for allegedly orchestrating the mortgage-linked securities deal, the British agency said.