View more on these topics

Ex-broker banned for trade rigging

FCA building FCA feesThe 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.”

Recommended

SimplyBiz expands DB transfer referral panel

SimplyBiz has added independent firm Onvestor to its defined benefit pension transfer referral panel. According to the firm, the panel offers solutions to advisers who do not operate in the defined benefits transfer market, however, are required to meet the needs of their clients. The panel is part of the firm’s ‘SimplyRefer’ proposition, which includes […]

Phil Wickenden: Going technical in the protection market

A few weeks ago, I was bold/stupid enough to suggest that as an industry we can be too eager to dive into the technical nitty gritty and gloss over some of the simple but important bits – understanding the stuff people like and want, then delivering said stuff in a way that floats their boat. […]

Spotlight on charges 700x450.jpg
7

MPs refuse to back down on contingent charging ban

The work and pensions select committee of MPs has reiterated its calls for action on contingent charging after the FCA’s decision not to take up its recommendation and ban the practice for defined benefit transfers. In a statement today, the committee says there has been “no change” in its view of the damage caused by […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. FCA-: 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”.

    So nearly £260 grand up, I would wager Terry Farr is miffed at that….
    Alistair Campbell, was more peed off at being banned by the Labour party

    Ok back to my point…no fine…. no criminal sentence…no reprimand for his actions, other than kicked out of a club (financial services) he couldn’t stand anyway !!

    • Whilst I accept your general point, he didn’t end up £260k up as the article stated that the brokerage income went into the general pool that increased bonuses for everyone on the desk; so the £260k would have been diluted and distributed around.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com