View more on these topics

FCA rebukes banks over Libor rigging response

FCA interior logo 620x430

The FCA has hit out at banks for failing to address risk management issues in the wake of the Libor rigging scandal.

A thematic review carried out by the regulator found that while “some progress” has been made in improving oversight and controls around benchmarks, the application of lessons learned from the episode has been “uneven” across the industry and “lacked the urgency required”.

In particular, the FCA says firms are interpreting the IOSCO definition of benchmarks too narrowly and, as a result, are failing to identify a wide enough scope of benchmark activities. In addition, some businesses have “not made sufficient effort” to address conflicts of interest.

The FCA has written to all firms involved in the review to provide individual feedback.

FCA director of supervision – investment, wholesale and specialists Tracey McDermott says: “We have seen widespread historic misconduct in relation to benchmarks.

“It is now critical that firms act to restore trust and confidence in the system. Firms should have in place systems to manage the risks posed by benchmark activities and to address the weaknesses that have previously been identified.

“We recognise that this is a significant task and firms had made some improvements, but the consistency of implementation and speed at which these changes have been taking place is disappointing.  Firms should take our findings on board and consider further steps to improve their oversight.”

The FCA has issued a slew of fines in relation to benchmark rigging in recent years. The largest of these, £284m, was handed to Barclays for foreign exchange manipulation in May this year.

UBS, Deutsche Bank, Citibank, JPMorgan, RBS, UBS, HSBC, Rabobank and Lloyds Bank of Scotland have each been hit with penalties running into the hundreds of millions by the regulator in relation to benchmark rigging.

Screen Shot 2015-07-29 at 10.30.41


Christine Lagarde 2013 700x450.jpg

IMF warns of Eurozone stagnation

The International Monetary Fund has warned the risk of stagnation remains in the eurozone area, with the medium-term outlook for growth being “subdued”. In a consultation on the euro area, the IMF says “high unemployment, especially among the youth; large corporate debt; and, rising non-performing loans in the banking system” are all potential risks for […]


Which asset classes will benefit from US rate rise?

With Janet Yellen having recently re-confirmed a US rate rise before the end of the year, the markets have been well prepared for the impending hike. But which asset classes will react favourably, and negatively, to the hike? Assets to benefit: US dollar Any rise in rates is likely to lead to a stronger dollar, […]

FCA logo new 3 620x430

FCA: Firms still using pressure tactics on sales staff

The FCA says firms are still failing to make progress on reforming sales incentives more than four months after the regulator raised concerns about misselling risks. After a probe of performance management of sales staff, including advisers and intermediary firms, the regulator laid out its concerns about potential misselling among firms dealing with retail customers […]


Govt may have to scrap Lloyds share sale

The Government may have slow down or scrap its current sale of Lloyds Banking Group shares in order to ensure there is stock left for a retail offering next year. UK Financial Investments, which manages the Government’s banking stakes, is carrying out profitable sales in Lloyds shares by slowing releasing them to the market. But […]

Who cares?

By Tracey Dickson, marketing consultant There are almost 7 million carers in the UK – that’s around 10 per cent of the population who provide unpaid care for a disabled, seriously ill or older loved one.1 But according to a report from the charity Carers UK, 20 per cent of people providing 50 hours or more of care […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Julian Stevens 29th July 2015 at 8:22 pm

    Pot calling kettle black. What lessons have YOU learned and acted upon from past mistakes FCA? Bugger all that I can see,

Leave a comment


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