FCA drops Libor case against ex-UBS trader

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The FCA has ended plans to prosecute a former UBS trader over the Libor-rigging scandal after failing to convince an independent panel of its case.

Panagiotis Koutsogiannis will face no charges despite a court hearing that he and other UBS colleagues discussed Libor fixing, the Telegraph reports.

The former head of funding for UBS’ rates division, was named as part of the trial of Tom Hayes, a trader sentenced to 14 years’ jail earlier this week.

He refused to give evidence during the trial, but the jury was instead shown transcripts of interviews he had given to the FCA and the US Commodity Futures Trading Commission, as well as emails between Hayes and Koutsogiannis in which the former asked for approval to place trades to lower Libor.

Koutsogiannis’ lawyer Ben Rose of Hickman & Rose told the Telegraph: “After a long and detailed investigation and a full hearing of the Regulatory Decisions Committee of the FCA it was concluded that Mr Koutsogiannis’ conduct was neither dishonest nor lacking in integrity.

The FCA’s regulatory decision committee is part of the FCA independent appeals process. The panel is designed to be independent from the team at the centre of the issue, and hears cases where the person under investigation disputes the watchdog’s version of events.

The 11-person committee last month ended an investigation into former JP Morgan trader Bruno Iksil, known as the London Whale.

The FCA declined to comment.