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U.K. Financial Conduct Authority Won’t Fine Individual Traders

By:
FX Empire Editorial Board

The U.K. Financial Conduct Authority has no plans to fine individual forex traders as the watchdog nears settlements with lenders they are employed at.

U.K. Financial Conduct Authority Won’t Fine Individual Traders

The U.K. Financial Conduct Authority has no plans to fine individual forex traders as the watchdog nears settlements with lenders they are employed at.

The regulator is partly attempting to prevent the investigation from extending for a long time like the Libor-manipulation probe, where individual dealers have been slapped with fines, according to a source privy to the matter.

Prosecutors and watchdogs in three continents are investigating claims that traders in some of the world’s largest banks conspired to rig foreign exchange benchmarks and exchange confidential client data. The FCA is holding discussions with Citigroup Inc, Barclays Plc, Royal Bank of Scotland Group Plc, JPMorgan Chase & Co, UBS AG and HSBC Holdings in order to reach a settlement by November.

The penalties are expected to target aspects such as inadequate systems and controls. When contacted, Lara Joseph, FCA‘s spokeswoman, refused to comment.

The U.K. regulator is still imposing fines on institutions such as Deutsche Bank for manipulating London interbank offered rate, along with some of its traders, two years after it first reached a settlement with Barclays.

The watchdog has proposed fines totaling 10 million pounds ($16.3 million) on some traders. The traders are allowed to appeal the fines by notifying the Regulatory Decisions Committee, FCA’s internal advisory panel that is composed of accountants and lawyers.

Some traders, whose Libor penalties were recently halted pending filing of more charges by the U.K. Serious Charges Office, may be slapped with fines and criminal charges. The SFO launched a probe into alleged FX market malpractices in July. Sources privy to the matter stated that the U.S. Justice Department is drafting charges that will be filed by October against forex dealers.

 

About the Author

FX Empire editorial team consists of professional analysts with a combined experience of over 45 years in the financial markets, spanning various fields including the equity, forex, commodities, futures and cryptocurrencies markets.

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