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ARTICLE · 29 NOVEMBER 2019

FCA Disciplinary Action Puts Senior Managers In The Spotlight

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In a Final Notice that showcases the importance the Financial Conduct Authority (FCA) places on the responsibilities of senior managers...

United KingdomFinance and Banking

In a Final Notice that showcases the importance the Financial Conduct Authority (FCA) places on the responsibilities of senior managers, the FCA fined Tullett Prebon (Europe) Limited (Tullett Prebon) £15.4 million for failing to conduct its business with due skill, care and diligence (Principle 2), failing to have adequate risk management systems (Principle 3) and for failing to be open and cooperative with the FCA (Principle 11).

Following an FCA investigation, the FCA found that, between 2008 and 2010, Tullett Prebon's Rates Division had ineffective controls around broker conduct. Lavish entertainment and a lack of effective controls allowed improper trading to take place, including "wash" trades which generated unwarranted and unusually high amounts of brokerage for the firm.

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