FCA building
The Financial Conduct Authority has used new powers for the first time today in issuing two Warning Notice Statements, understood to be connected to the LIBOR fixing investigation.
Two unnamed individuals have been given the warnings – both in relation to "significant failings in relation to an interest rate benchmark".
The first person to be given the warning was a bank manager.
According to the notice he was "personally aware of and condoned" traders making requests to submitters to manipulate interest rate benchmark submissions by that broker.
Submitters are responsible for submitting what the day's LIBOR rate will be.
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The second warning was given to a submitter alleged to have made submissions which took into account requests made by traders to benefit their positions. This happened for over two years.
This individual is accused of colluding with an interdealer broker acting on behalf of a trader from another bank, by making interest rate benchmark submissions which took into account a request made by that broker.
The FCA's Regulatory Decisions Committee will rule on the matter and decide what action is appropriate.
The notices, designed to promote early transparency of enforcement proceedings, were part of the Financial Services Act 2012.
The documents, released this morning, show the notices were issued in late November.
