01 · In plain English
What happened.
On 28 July 2014 the FCA fined Lloyds Bank plc and Bank of Scotland plc a total of £105,000,000 (split £52.5m each), a figure discounted from an original aggregate penalty of £150,000,000 for early settlement. The FCA found the firms breached Principle 3 (firms must take reasonable care to organise and control their affairs) and Principle 5 (firms must observe proper standards of market conduct) by manipulating submissions used to calculate two benchmark reference rates — the sterling Repo Rate and LIBOR — in order to seek to influence those rates. The penalty and the settlement discount are recorded in the FCA final notice dated 28 July 2014.
Summarised from the FCA's notice and press reports. The FCA's own text and documents below are the authoritative record.
02 · Enforcement details
What the FCA register says.
On 28 July 2014, the FCA imposed on Lloyds Bank plc and Bank of Scotland plc a financial penalty of £105,000,000 (split evenly between the two firms and discounted from £150,000,000 for early settlement) in respect of breaches of Principle 3 and 5 of the FCA's Principles for Businesses. The Firms committed misconduct by breaching Principle 5 and Principle 3 of the Authority's Principles for Businesses through manipulating submissions to two benchmark reference rates, the Repo Rate and LIBOR, in order to seek to manipulate those rates. The Final Notice can be found at the following link.
03 · Firm details
Firm on the FCA register.
- Firm name
- Lloyds Bank PLC
- Firm reference number
- 119278
- Register status
- Authorised
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