ING to Pay $5 Million to Settle Misconduct Charges on NYSE
- This is the second announcement of a fine against the bank this week.
New York Stock Exchange Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term (NYSE Regulation), the regulatory body that monitors activity on the NYSE’s markets, announced on Thursday that ING Financial Markets will pay $5 million to settle misconduct charges related to American Depository Receipts (ADRs).
ADRs are negotiable securities that allow US investors to invest in foreign companies without needing to purchase their shares in a foreign market. On the flip side, it also allows foreign companies to increase their exposure to US markets.
The charges against the Dutch multinational bank follow an investigation by NYSE Regulation, which looked into improper conduct by a trader, Ann Louise Healy, on ING’s securities lending desk from 2007 to 2015.
The regulator found that during this time, Healy borrowed ADRs from counterparty broker-dealers when she knew that these firms did not own the requisite ordinary foreign shares underlying those ADRs.
Furthermore, Healy and ING made no effort to check whether they or the customers who they lent the pre-released ADRs owned the shares. As a result, the bank was selling ADRs that were not backed by ordinary shares. As can be expected, this is against the rules of the NYSE.
As a result of her actions, NYSE Regulation suspended Healy from having any association with an NYSE member or member organisation from May 18, 2018, until December 31, 2018.
Second fine for ING in a week
The announcement from NYSE Regulation comes off the back of news earlier this week that the Dutch bank has agreed to pay fines and other Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of €775 million ($902 million) in relation to money laundering.
This is because a lingerie trader, a building-materials supplier and two fruit and vegetable importers have all been accused of laundering hundreds of millions of euros through their accounts with ING.
An investigation into ING found that between 2010 and 2016 the bank missed the signs of this activity because of “serious and repeated shortcomings” in its approach to anti-money-laundering rules.
New York Stock Exchange Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term (NYSE Regulation), the regulatory body that monitors activity on the NYSE’s markets, announced on Thursday that ING Financial Markets will pay $5 million to settle misconduct charges related to American Depository Receipts (ADRs).
ADRs are negotiable securities that allow US investors to invest in foreign companies without needing to purchase their shares in a foreign market. On the flip side, it also allows foreign companies to increase their exposure to US markets.
The charges against the Dutch multinational bank follow an investigation by NYSE Regulation, which looked into improper conduct by a trader, Ann Louise Healy, on ING’s securities lending desk from 2007 to 2015.
The regulator found that during this time, Healy borrowed ADRs from counterparty broker-dealers when she knew that these firms did not own the requisite ordinary foreign shares underlying those ADRs.
Furthermore, Healy and ING made no effort to check whether they or the customers who they lent the pre-released ADRs owned the shares. As a result, the bank was selling ADRs that were not backed by ordinary shares. As can be expected, this is against the rules of the NYSE.
As a result of her actions, NYSE Regulation suspended Healy from having any association with an NYSE member or member organisation from May 18, 2018, until December 31, 2018.
Second fine for ING in a week
The announcement from NYSE Regulation comes off the back of news earlier this week that the Dutch bank has agreed to pay fines and other Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of €775 million ($902 million) in relation to money laundering.
This is because a lingerie trader, a building-materials supplier and two fruit and vegetable importers have all been accused of laundering hundreds of millions of euros through their accounts with ING.
An investigation into ING found that between 2010 and 2016 the bank missed the signs of this activity because of “serious and repeated shortcomings” in its approach to anti-money-laundering rules.