ICAP plc Files a Complaint With EU Ombudsman About Regulatory Prejudice

According to a Reuters report, inter-dealer broker ICAP plc (LON:IAP) has filed a complaint with the European Ombudsman's office related to regulatory prejudice in the case of the investigation of Libor Libor Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Libor stands for London Inter-bank offered rate. It is an industry-specific term which most of us would never have heard of until the "Libor scandal" became popularized in 2012. Libor is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest. The Libor rate effects over $800,000,000,000,000 in financial deals. Banks simply cannot lend money to one another whenever they like as there is a system in place. Every day a group of leading Read this Term Japanese yen manipulation.

The company was charged by European regulatory agencies with “facilitating” a cartel arrangement with major banks amongst which Citigroup, Deutsche Bank, JP Morgan, RBS and UBS. ICAP plc (LON:IAP) rejected the regulators claims and did not enter into a settlement agreement like the big banks involved in the case.

The Head of the EU’s Ombudsman’s Office Communication Unit, Ben Hagard stated to Reuters that the complaint was filed on the 8th of October.

The EU Ombudsman is investigating European institutions for any abuse of power, unfairness or other maladministration.

While the powers of The European Ombudsman are limited, it can investigate complaints against most European Union institutions. The problem is that even after the conclusion of the investigation and a subsequent official recommendation, the institution doesn't have binding powers to enforce Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with its decisions.

According to recent statistics, the compliance with the EU’s Ombudsman’s suggested course of action stands at about 82%. The ombudsman’s powers are limited to EU institutions, local regulators are not obliged in any way to consider the European institution’s stance.

The company has been heavily intertwined in the LIBOR related investigations as U.S. and British authorities fined the company last year $87 million and filed criminal charges against three former employees over their involvement in the LIBOR interest rate manipulation scandal.

In a separate ruling, ICAP plc (LON:IAP) has been issued a $65 million civil monetary penalty by the CFTC for alleged manipulation, false reporting and attempting to manipulate the Yen LIBOR rate.

Back in August the company announced that its arm responsible for operating benchmarks for the financial services industry that it has voluntarily adopted the IOSCO Principles for Financial Benchmarks, which are likely to form the basis of impending European legislation.