The FCA has banned a former broker from any regulated financial activity after finding he rigged trades for personal profit.
The regulator says Terry Farr, “acted dishonestly and lacked integrity, and as a result is not fit and proper to perform any function in relation to any regulated activity.”
Farr previously worked at wholesale broking firm RP Martin Holdings.
Between 19 September 2008 and 25 August 2009, the FCA found Farr arranged nine wash trades, ie unwarranted brokerage payments for Martins, with no legitimate commercial purpose.
These are risk-free trades, with the same party, in pairs that cancel each other out.
Farr was a broker and manager on the Japanese Yen (JPY) desk at Martins. The wash trades, which he actively concealed from other traders, were between Martins and a trader at UBS.
The UBS trader was led to believe Farr, in return, would consort to influence the JPY Libor submissions of other banks.
Farr was prosecuted by the Serious Fraud Office for alleged conspiracy to defraud regarding the Yen Libor rate submissions. However, Farr was acquitted in January 2016.
According to the regulator, Farr’s motivation for arranging the wash trades was profit and his own personal financial gain. Martins received unwarranted brokerage of £258,151.09 as a result of the trades. Farr knew that this increased the bonus pool available to him and colleagues on the JPY desk.
FCA executive director of enforcement and market oversight, Mark Steward, said: “There was no legitimate reason for Mr Farr to make these trades and his actions were motivated by greed. His actions mean he has no place in financial services.
“Today’s ban reflects our commitment to making sure that people working in financial services act with integrity.”