Release Date: 23rd April 2015
To access the original FCA document, click here.
Summary
Who was fined:
- Deutsche Bank AG
Why the FCA fined them:
- The FCA fined Deutsche Bank AG £227 million for serious failings in LIBOR and EURIBOR (collectively known as IBOR) submissions between January 2005 and December 2010.
- Deutsche Bank manipulated its IBOR submissions across all major currencies, involving at least 29 individuals.
- The bank misled the FCA, delaying the investigation and failing to address issues with its systems and controls, including inadequate systems for recording and tracing traders’ activities.
Key Takeaways for Other Firms:
- Maintain Integrity in Submissions: Ensure that all financial benchmark submissions are accurate and free from manipulation.
- Robust Systems and Controls: Implement adequate systems to monitor and control trading activities, including proper recording and tracing mechanisms.
- Timely Cooperation with Regulators: Provide timely, accurate, and complete information to regulators to avoid penalties and delays in investigations.
- Cultural Change: Foster a culture of compliance and integrity within all divisions to prevent systemic misconduct.
- Regular Reviews: Conduct regular reviews of systems and processes to identify and mitigate risks of misconduct.
By adhering to these principles, firms can maintain market integrity, avoid significant regulatory penalties, and ensure the proper functioning of financial markets.
