The Financial Conduct Authority (FCA) has banned Paul Robson, a former trader at Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) from the UK financial services industry for lacking honesty and integrity following a criminal conviction for fraud in the US. In 2014 Mr Robson pleaded guilty in the US for his role in a conspiracy to manipulate Rabobank’s Yen LIBOR submissions to benefit trading positions.
This is the FCA’s first public action against a trader for manipulating LIBOR submissions, and follows recent fines and bans for two senior executives for LIBOR compliance failures. To date the FCA has issued 14 warning notices relating to interest rate benchmarks, and continues wider investigations into individuals’ conduct in relation to LIBOR misconduct.
Georgina Philippou, acting director of enforcement and market oversight at the FCA, said:
"No excuse can be made for Mr Robson’s behaviour, which was particularly serious. He was the primary submitter of Yen LIBOR at Rabobank for a number of years and experienced in the market. He knew what he was doing was wrong. This ban reinforces our expectation that individuals and firms take responsibility for ensuring market integrity and reminds them of the consequences if they fall short of our standards."
The FCA issued Mr Robson with a Warning Notice on 28 November 2013, but proceedings were stayed due to ongoing criminal investigations. Today’s ban comes ahead of sentencing in the US in 2017 and reflects the FCA’s commitment to protect the integrity of the UK financial system.
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