FCA warning notices over benchmark rigging

Warning signA manager within a bank connected to interest-rate rigging knew there were no measures in place to stop the fixing but made no attempt to address the issue, it is alleged.

The individual facilitated attempts by other people to manipulate interest rate benchmark submissions and was “knowingly concerned” in contravention of rules in relation to a benchmark for more than three years.

The allegations are made in a warning notice issued by the Financial Conduct Authority (FCA). Details were given of the notice today, though the notice – along with another notice to a different individual – was issued in November last year.

The other individual – neither are named – was a submitter at a bank and for more than two years made interest rate benchmark submissions which took into account requests made by traders to benefit their positions.

These are just some of the allegations the FCA makes against the individuals.

A warning notice is not a final decision by the FCA and the individuals have the right to make representations.

The FCA has been investigation the rigging of Libor and other key interest rates. Fines have already been issued to some banks following an investigation by the European Commission.

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