Ex-RP Martin chief banned from the City
TWO FORMER top executives at brokerage RP Martin were fined by the City watchdog yesterday over compliance failings related to the attempts by some of their staff to fiddle Libor.
Former chief executive David Caplin was fined £210,000, and ex-compliance officer Jeremy Kraft was fined £105,000. Both were banned from taking senior roles in financial services firms.
Their failings led to a culture which permitted Libor manipulation to take place, and for wrongdoing to go undetected, the Financial Conduct Authority (FCA) said.
“Proper systems and controls were non-existent and there was a culture at Martins where revenue came first and compliance was seen as unimportant rather than as an integral part of the running of the firm,” said the FCA’s Georgina Philippou.
“Both individuals also ignored obvious risks such as the risk that brokers would give or accept inducements. This risk did in fact crystalise when brokers at Martins were induced to assist in Libor manipulation in exchange for corrupt brokerage payments.”
Both agreed to settle early in the investigation, resulting in a 30 per cent discount to their fines.