Warning notice statement 14/5

The Financial Conduct Authority (the FCA) gave an individual a warning notice on 16
January 2014 proposing to take action in respect of the conduct summarised in this
statement.

IMPORTANT: a warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give certain
statutory notices described as within its scope by the FCA’s Handbook.

If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.

If either the RDC or the Upper Tribunal decide that no further action should be
taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.

The following is a summary of the reasons why the FCA gave the individual a warning
notice:


•
The FCA considers that the individual was knowingly concerned in the contravention
by a bank of Principle 5 by reason of significant failings in relation to an interbank
interest rate benchmark.


•
In particular, the FCA considers that the individual:


o
took into account requests made by traders to benefit their positions when
determining the submission to be made to an interbank interest rate
benchmark, despite knowing that it was improper to take such matters into
account when determining where the bank’s submission should be set; and

o
condoned the actions of other employees in receiving requests made by traders
to benefit their trading positions and determining submissions which took into
account such requests.