Royal Bank of Scotland’s Japan brokerage head resigned after the country’s financial regulator punished the unit for attempts to manipulate benchmark interest rates.
The Financial Services Agency ordered the firm to improve operations, the regulator said in a separate statement.
The punishment comes two months after the unit pleaded guilty to wire fraud as part of a $612 million settlement with the U.K. and U.S. for rigging the London interbank offered rate. More than a dozen banks and brokers are being probed worldwide for influencing benchmarks including Libor, the benchmark for at least $300 trillion of securities.
RBS must submit a report to the FSA by May 13 describing how it will improve compliance and prevent a recurrence, the regulator said. The FSA handed down the penalties a week after the Securities and Exchange Surveillance Commission recommended administrative action against the firm.
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image: © Hideyuki Kamon