FCA Bans RBS LIBOR Submitter For Misconduct
- UK watchdog bans former RBS trader Paul White over Libor misconduct; he narrowly misses £250,000 fine.
The UK’s Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) announced today that it has banned former Royal Bank Of Scotland (RBS) trader, Paul White, from participating in any regulated financial services activities for his part in submitting quotes for compiling the Libor interest rate benchmark.
The enforcement of the ban comes amid the ongoing trial of five former Barclays bankers who appeared in a London court last week accused of conspiring to rig Libor interest rates.
The FCA found White not to be a fit and proper person, lacking in integrity by virtue of his conduct.
Between 8 March 2007 and 24 November 2010, White was the primary submitter of yen and Swiss franc Libor quotes for RBS. The FCA has, as a result, found White not to be a fit and proper person and lacking in integrity by virtue of his conduct.
According to Mark Steward, director of enforcement and market oversight at the FCA: “As a LIBOR submitter, White had an obligation to ensure the submissions he made were proper ones. By allowing his submissions to be set, in effect, by those with collateral financial interests in the outcome, Mr White recklessly disregarded the risk, the obvious risk, that his LIBOR submission might corrupt LIBOR’s integrity.”
The Evidence
During the period stated, White is said to have received 68 documented items of communication from RBS JPY and CHF derivatives traders requesting submissions that would benefit their trading positions. In addition, White is known to have sat next to a CHF derivatives trader who made oral requests for CHF LIBOR submissions to him on a weekly basis.
In submitting RBS’s JPY and CHF LIBOR rates, White took the requests from JPY and CHF derivatives traders into account. He also took into account requests received from brokers on behalf of an external JPY derivatives trader when making RBS’s JPY LIBOR submissions.
Were it not for White’s serious financial hardship, the FCA would have fined him £250,000.
Today’s ban reflects the FCA’s commitment to protect the integrity of the UK financial system. The case is the FCA’s fourth public action against a trader for manipulating LIBOR submissions and follows fines and bans in early 2015 for senior executives for LIBOR Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term failures.
The FCA has stated that were it not for White’s serious financial hardship, it would have fined him £250,000.
The UK’s Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) announced today that it has banned former Royal Bank Of Scotland (RBS) trader, Paul White, from participating in any regulated financial services activities for his part in submitting quotes for compiling the Libor interest rate benchmark.
The enforcement of the ban comes amid the ongoing trial of five former Barclays bankers who appeared in a London court last week accused of conspiring to rig Libor interest rates.
The FCA found White not to be a fit and proper person, lacking in integrity by virtue of his conduct.
Between 8 March 2007 and 24 November 2010, White was the primary submitter of yen and Swiss franc Libor quotes for RBS. The FCA has, as a result, found White not to be a fit and proper person and lacking in integrity by virtue of his conduct.
According to Mark Steward, director of enforcement and market oversight at the FCA: “As a LIBOR submitter, White had an obligation to ensure the submissions he made were proper ones. By allowing his submissions to be set, in effect, by those with collateral financial interests in the outcome, Mr White recklessly disregarded the risk, the obvious risk, that his LIBOR submission might corrupt LIBOR’s integrity.”
The Evidence
During the period stated, White is said to have received 68 documented items of communication from RBS JPY and CHF derivatives traders requesting submissions that would benefit their trading positions. In addition, White is known to have sat next to a CHF derivatives trader who made oral requests for CHF LIBOR submissions to him on a weekly basis.
In submitting RBS’s JPY and CHF LIBOR rates, White took the requests from JPY and CHF derivatives traders into account. He also took into account requests received from brokers on behalf of an external JPY derivatives trader when making RBS’s JPY LIBOR submissions.
Were it not for White’s serious financial hardship, the FCA would have fined him £250,000.
Today’s ban reflects the FCA’s commitment to protect the integrity of the UK financial system. The case is the FCA’s fourth public action against a trader for manipulating LIBOR submissions and follows fines and bans in early 2015 for senior executives for LIBOR Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term failures.
The FCA has stated that were it not for White’s serious financial hardship, it would have fined him £250,000.