This is not about having armies of compliance staff ticking boxes.
#CHASE BANK EURO EXCHANGE RATE FREE#
“Firms could have been in no doubt, especially after Libor, that failing to take steps to tackle the consequences of a free for all culture on their trading floors was unacceptable.
This is essential to restoring the public’s trust in financial services and London maintaining its position as a strong and competitive financial centre.” Tracey McDermott, the FCA’s director of enforcement and financial crime, said: All firms need to work with us to deliver real and lasting change to the culture of the trading floor. It is about a combination of actions aimed at driving up market standards across the industry. “But this is not just about enforcement action. Senior management commitments to change need to become a reality in every area of their business. They must make sure their traders do not game the system to boost profits or leave the ethics of their conduct to compliance to worry about. Today’s record fines mark the gravity of the failings we found and firms need to take responsibility for putting it right. “The FCA does not tolerate conduct which imperils market integrity or the wider UK financial system. Martin Wheatley, chief executive of the FCA, said: However, despite our well-publicised action in relation to Libor and the systemic importance of the G10 spot FX market, the Banks failed to take adequate action to address the underlying root causes of the failings in that business. Since Libor general improvements have been made across the financial services industry, and some remedial action was taken by the Banks fined today. We have worked closely with other regulators in the UK, Europe and the US: today the Swiss regulator, FINMA, has disgorged CHF 134 million ($138 million) from UBS AG and, in the US, the Commodity Futures Trading Commission (‘the CFTC’) has imposed a total financial penalty of over $1.4 billion on the Banks and the Office of the Comptroller of the Currency (‘the OCC’) has imposed a total financial penalty of $700 million on Citibank N.A. Today’s fines are the largest ever imposed by the FCA, or its predecessor the Financial Services Authority (FSA), and this is the first time the FCA has pursued a settlement with a group of banks in this way. They shared information about clients’ activities which they had been trusted to keep confidential and attempted to manipulate G10 spot FX currency rates, including in collusion with traders at other firms, in a way that could disadvantage those clients and the market. These failings allowed traders at those Banks to behave unacceptably. The Banks failed to manage obvious risks around confidentiality, conflicts of interest and trading conduct. This complements our ongoing supervisory work and the wider reforms to the fixed income, commodity and currency markets which are the subject of the UK Fair and Effective Markets Review.īetween 1 January 2008 and 15 October 2013, ineffective controls at the Banks allowed G10 spot FX traders to put their Banks’ interests ahead of those of their clients, other market participants and the wider UK financial system. We will require senior management at firms to take responsibility for delivering the necessary changes and attest that this work has been completed. In addition to taking enforcement action against and investigating the six firms where we found the worst misconduct, we are launching an industry-wide remediation programme to ensure firms address the root causes of these failings and drive up standards across the market. In relation to Barclays Bank Plc, we will progress our investigation into that firm which will cover its G10 spot FX trading business and also wider FX business areas. At the heart of today’s action is our finding that the failings at these Banks undermine confidence in the UK financial system and put its integrity at risk. The G10 spot FX market is a systemically important financial market. The Financial Conduct Authority (FCA) has imposed fines totalling £1,114,918,000 ($1.7 billion) on five banks for failing to control business practices in their G10 spot foreign exchange (FX) trading operations: Citibank N.A.
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