Australian Securities & Investments Commission (ASIC) imposed a monetary penalty of $1.6m on Royal Bank of Scotland (RBS) for its alleged role in manipulating Australian Bank Bill Swap Rate (BBSW).
ASIC, in a statement said, that RBS derivatives and money-markets traders discussed their desks’ financial position when making submissions to the benchmark between January 2007 and April 2012, thereby garnering maximum possible profit of nearly A$810,000 (U$759,000) to to RBS.
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RBS will now make a voluntary contribution of $1.6m to finance independent financial literacy projects in Australia as part of an enforceable undertaking.
RBS also informed ASIC that it will undertake certain remedial measures with respect to its trading in Reference Bank Bills.
In addition, an Independent Compliance Expert will review and report on RBS’s compliance with the EU pertaining to these measures.
Besides RBS, UBS and France’s BNP Paribas also have entered into enforceable undertaking and reimbursed $1m "voluntary contributions" to help fund independent financial literacy projects.
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