UK watchdog’s Libor fine to hit RP Martin

BROKERAGE RP Martin is set for a £1m fine from the UK’s financial watchdog this week over the rigging of Libor.

The Financial Conduct Authority (FCA) is reportedly set to charge the firm for its part in the scandal, but the fine will be the smallest yet for alleged tampering with the interbank rate, which is used to establish the cost of banks borrowing from one another.

According Sky News, which originally reported the levy, the fine is thought to be relatively low in comparison to previous charges because the FCA is bound not to drive firms out of business with the size of its penalties.

So far, the FCA has brought six Libor-related penalties against financial firms. Regulators in the US and Eurozone have also hit banks with fines of their own.

During 2013, several banks were fined for Libor misconduct. Rabobank, one of the Netherlands’ largest financial institutions, was hit with a far larger payment of £105m late last year, the third biggest ever dished out by either the FCA or the previous regulator.

Two of RP Martin’s former brokers, Terry Farr and Games Gilmour were among the first to be charged for manipulating Libor, but the cases have not yet been brought to court.