Global regulators impose fines on RBS, JP Morgan, HSBC, Citi and UBS in forex probe

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The British Financial Conduct Authority (FCA), Swiss Finma and US Commodity Futures Trading Commission (CFTC) have imposed fines of £1.1bn (€1.39bn), CHF134m(€111.4m) and $1.4bn (€1.122bn) respectively on five global banking institutions for failures in their FX trading operations.

The banks are accused of failing to control their business practives in their G10 spot foreign exchange trading operations. “Between 1 January 2008 and 15 October 2013, ineffective controls at the Banks allowed G10 spot FX traders to put their Banks’ interests ahead of those of their clients, other market participants and the wider UK financial system. The Banks failed to manage obvious risks around confidentiality, conflicts of interest and trading conduct, “ FCA stated.

All banks charged by the FCA agreed to settle at an early stage and therefore qualified for a 30% discount under the FCA’s settlement discount scheme. Without the discount the total fine would have amounted to £1,592,740,000 (€2bn) for Citibank N.A. £322,250,000 (€409m) for HSBC Bank Plc £309,090,000 (€392m) for JPMorgan Chase Bank N.A. £317,380,000 (€403m), The Royal Bank of Scotland Plc £310,000,000 (€393m) and UBS AG £334,020,000 (€424m.

ABOUT THE AUTHOR
Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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