News Column

Watchdog starts to bark after first warning notice is doled out

February 4, 2014


THE CITY watchdog yesterday used new powers to issue its first warning notices to two bankers linked to the Libor rigging scandal. The Financial Conduct Authority (FCA), which replaced the Financial Services Authority last year, issued the notices to a unnamed manager at a bank, who the FCA claims condoned traders and submitters to collude and manipulate benchmark rates. The FCA issued the second notice to one of the bank's submitters - also not identified - for allegedly colluding with traders and interdealer brokers to manipulate rates. The case will now go to the FCA's regulatory decisions committee (RDC), an independent body that will hear evidence from the two bankers and decide if the FCA is right to hit them with a penalty. The move marks a change in the FCA's publicity for such cases. Previously it could not reveal a decision notice had been issued until the RDC decided the case. It lobbied for new powers from government to reveal warning notices earlier to show the public it was taking action. There are likely to be more warning notices issued by the FCA in coming months, as investigations by other authorities over Libor come to a head.

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Source: City A.M. (UK)

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