TP Icap fined £15m over lavish jollies and 'doughnut' accounts

Evening Standard Finance 1 month ago

BROKERS at top City firm Tullett Prebon treated clients to “lavish” all-expenses-paid jollies, which included trips to Las Vegas, Monte Carlo and Ibiza, in return for fake trades that paid commission and could have manipulated markets between 2008 and 2011, the financial watchdog ruled on Friday.

The Financial Conduct Authority fined the broker, now known as TP Icap after a deal in 2016, £15.4 million for a rigging scandal which included attempts to manipulate Libor, the London interbank offered rate which is linked to UK mortgages.

The Tullett brokers were found to have engaged in so-called “wash” trades, which involved buying and selling the same financial instrument at the same time in order to generate the appearance of liquidity in the market to encourage others to deal.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “While these trades did not mislead the market, nor amount to market abuse, the wash trades were entirely improper, undermining the proper function of the market.” Tullett is an interdealer broker which does deals for top investment banks including JPMorgan, Goldman Sachs and Morgan Stanley. It has around 2500 UK staff based mostly at Bishopsgate.

The FCA said Tullett Prebon failed to be open and cooperative with the watchdog and a breach occurred between August 2011 and October 2014, related to the FCA’s request to Tullett Prebon for broker audio tapes. It had no effective control over the brokers, said the watchdog. TP Icap chief executive Nicolas 

Breteau said: “We are pleased to put this historical matter behind us.” He added that none of the individuals involved remain with the firm. City insiders note that regulation is lately so tough that even a moderately expensive lunch has to be signed off by compliance departments.

The FCA said Tullett’s entertainment included drinks, dinners, golf vacations and trips abroad. “This is a people business,” said one senior manager by way of explanation to the FCA. Over the period under investigation, the firm had £900 million of revenues a year, of which 3%, £27 million, was typically spent on client entertainment. A monthly “doughnut report”, a reference to the shape of a graphic on internal documents, tracked entertainment expenditure by departme


Source link
Read also:
The New York Times › Finance › 1 month ago
Britain's Financial Conduct Authority said it had fined a unit of TP ICAP 15.4 million pounds in relation to an investigation over some trades in 2008-2011, after the watchdog found some former managers failed to act with "due skill, care and diligence...
Business Insider › Lifestyle › 3 weeks ago
Using an algorithm based on customer reviews, Yelp has picked out the best doughnut shop in every US state for 2019. A shop in Georgia is famous for serving ice cream sandwiched between the two halves of a doughnut. Virginia's top doughnut shop is...
The Wall Street Journal › 1 month ago
TP ICAP said it has agreed to pay a £15.4 million fine to settle an investigation by the U.K.’s Financial Conduct Authority into trades undertaken between 2008 and 2011.
The Sun › Finance › 4 days ago
MORRISONS has launched a new Jaffa Cake doughnut and they only cost 50p each. The Jaffa Chocolate Orange doughnut is filled with chocolate and orange sauce, hand-dipped in a chocolate glaze and topped with a Jaffa Cake. The doughnuts are available to...
Fox News › 1 week ago
If you thought the worst part of the doughnut was the bone, then you’re in luck!
The Sun › 4 days ago
CALLING all Krispy Kreme fans – you can now buy a bath bomb which smells like your favourite doughnut. Boots is selling a bath fizzer inspired by one of the doughnut maker’s classic flavours – ‘strawberries & kreme’. The bath bomb is on sale...
Manchester Evening News › Finance › 1 month ago
EuroMillions live: Here are the numbers for the £15m draw, plus the Lucky Stars, Thunderball and Millionaire Maker codes for Friday, October 11
The Guardian › Sports › 1 week ago
Roma are ready to make a €15m offer to Manchester United for Chris Smalling after the defender’s impressive start to his loan spell at the club
Business Insider › Lifestyle › 3 weeks ago
Rafael Nadal, 33, married long-time girlfriend Mery Perello, 31, in a lavish wedding in Majorca, Spain on Saturday. According to media reports, the wedding took place before 350 guests in a lavish ceremony at a privately owned fortress called La...
Business Insider › Technology › 1 month ago
Facebook announced Monday that it has taken down hundreds of fake accounts, groups, and pages originating from Ukraine and Iraq. In total, Facebook removed 244 accounts, 269 pages, 80 groups, and seven Instagram accounts, which were connected to these...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR