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Release Date: 11th November 2014

To access the original FCA document, click here.


The Financial Conduct Authority (FCA) has issued fines totalling £1.1 billion against five major banks for control failures in their G10 spot foreign exchange (FX) trading operations. The banks, including Citibank N.A., HSBC Bank Plc, JPMorgan Chase Bank N.A., The Royal Bank of Scotland Plc, and UBS AG, faced penalties for not adequately managing business practices that compromised the integrity and confidence in the UK financial system.

These fines are part of the FCA’s broader initiative to address misconduct in the FX market following the Libor scandal. The issues identified ranged from inadequate risk management to inappropriate sharing of confidential client information and collusive behaviour aimed at manipulating FX benchmark rates. Such practices disadvantaged clients and the market, thereby undermining the fairness and integrity of the FX market.

In response to these failings, the FCA is implementing an industry-wide remediation programme to enhance governance and control environments across the sector. This programme mandates senior management at financial firms to oversee necessary changes actively and ensure their effective implementation to prevent recurrence.

Key Takeaways for Other Firms:

The FCA’s actions reflect its commitment to upholding high standards within financial markets and its readiness to impose significant penalties and corrective measures on firms that fail to meet these standards. These measures are critical for restoring trust in the financial services industry and maintaining London’s status as a leading global financial centre.

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