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FCA publishes first warning notices against two bankers

The FCA has published warning notices against two bankers for Libor manipulation, the first it has published since it was given the power to do so.

The two individuals have not been named.

The FCA says the first individual, who was a submitter at a bank, was knowingly involved in significant failings in relation to Libor by the bank over a period of two years.

It says the individual made interest rate benchmark submissions which took into account requests made by traders to benefit their positions and colluded directly with traders at another panel bank in an attempt to influence submissions.

The second warning notice is against a former manager at a bank who was knowingly involved in significant Libor failings over a period of more than three years.

The FCA says the individual was personally aware of and condoned traders making requests to submitters to manipulate interest rate benchmark submissions, and submitters making submissions which took those requests into account.

The individual was also responsible for the oversight and supervision of the bank’s submitters and some of the bank’s traders and failed to manage appropriately the business area for which he was responsible.

In addition, the individual was aware of the absence of systems, controls or policies governing the procedure for making interest rate benchmark submissions at the bank, and took no steps to address this.

The FCA was given the power to publish early warning notices by the Financial Services Act 2012, with the aim of promoting early transparency of enforcement proceedings.

In a consultation published in March 2013, the regulator proposed the powers would apply to firms and individuals, and that warning notices would not be published where it is unfair to the person involved – but only if the individual could prove publication could materially affect their health, result in a disproportionate loss of income, or prejudice criminal proceedings against them.

But in a final policy statement published in October 2013, the FCA watered down the proposals, saying it will normally only identify firms in warning notices, and not individuals.

The FCA said it would consider publishing anonymised warning notices where appropriate, and lowered the threshold that a person has to meet to demonstrate that publication of a notice would be unfair.

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  1. I bet that if the FCA had warned an IFA then he or she would be named, so why not a BANKER !!!!

    Double standards!

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