Royal Bank of Scotland enters EU with ASIC
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from The Royal Bank of Scotland PLC and The Royal Bank of Scotland NV (RBS) in relation to potential misconduct involving the Australian Bank Bill Swap Rate (BBSR).
ASIC reported that this was the third outcome the regulator had achieved as part of its ongoing enquiries in relation to the BBSW submission process. UBS AG and BNP Paribas have previously entered into EUs and paid a $1 million voluntary contribution.
"Following ASIC enquiries, RBS reported to ASIC that it had found evidence of conduct seeking to influence its BBSW submissions, based on how the submissions may benefit RBS's derivatives positions," the regulator said. "RBS had withdrawn from the BBSW submissions panel on 30 April 2012.
"RBS also reported to ASIC that it had found limited instances of communications discussing trading of Reference Bank Bills with reference to the setting of BBSW."
ASIC reported that on 6 February 2013, the US Commodity Futures Trading Commission issued orders against The Royal Bank of Scotland PLC and RBS Securities Japan Limited in relation to misconduct in respect of the London Interbank Offer Rate. These orders involved undertakings by these entities as to the integrity and reliability of benchmark interest rate submissions globally.
"RBS has cooperated fully with ASIC in relation to ASIC's investigation into the reported conduct," the regulator said.
"As of 27 September 2013 the BBSW is now electronically calculated, and as such there is no longer the need for panel banks to make submissions.
"ASIC is closely monitoring international developments in relation to benchmarks, including the work of the Financial Stability Board and of the Task Force on Financial Market Benchmarks established by the International Organization of Securities Commissions (IOSCO). ASIC is participating in the IOSCO task force.
"ASIC's inquiries in relation to the BBSW submission process and trading in Reference Bank Bills are ongoing."
As well as entering into an EU, RBS has agreed to make a voluntary contribution of $1.6 million to fund independent financial literacy projects in Australia.
Recommended for you
A former AMP adviser told the Federal Court how they are scared to turn off their phone after a fellow adviser attempted suicide as Justice McElwaine said the 92 objections “weighed heavily” on his mind.
Providence Wealth Advisory Group has appointed a new chief investment officer, a dedicated position after the role was previously held by its CEO.
While hiring new staff in a financial advice practice inevitably incurs expenses, Striver’s Alisdair Barr says the greater business cost can come from losing the skills of a valuable team member.
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.