Financial Services Authority

  1. Ban for ex-broker after Libor scandal

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    Terry Farr - one of the former City money brokers cleared in 2016 of helping to rig the Libor lending rate - has been banned from working in any "regulated financial activity" by the City regulator.

    The Financial Conduct Authority (FCA) said the former Martins Brokers employee acted "dishonestly and lacked integrity" when he conducted "wash trades" between 19 September 2008 and 25 August 2009.

    These nine wash trades, the FCA said, took place to "obtain unwarranted brokerage payments [of £258,151] for Martins with no legitimate commercial purpose".

    Wash trades cancel each other out and, the FCA said, they took place because Mr Farr encouraged a trader to believe he could influence Libor.

    Documents provided by the FCA show that, among other things, he had argued it was highly unfair to take action in respect of those trades, and that during the criminal proceedings, it was an agreed fact that wash trades do not constitute the criminal or regulatory offence of market abuse.

  2. By Andy Verity

    BBC Economics correspondent

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    Bank staff were expected to take into account the bank's commercial interests when setting the benchmark Libor rate, the High Court is told.

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