21st Jul 2014 11:26
LONDON (Alliance News) - Royal Bank of Scotland Group PLC was Monday censured by Australia's markets regulator after evidence was found that the bank had sought to influence the setting of the primary interest rate benchmark used in the Australian financial markets for pricing many financial contracts in the country.
RBS reported evidence of the efforts to influence the Bank Bill Swap Rate after the Australian Securities & Investments Commission (ASIC) made enquiries to the bank, according to the regulator. The ASIC said that RBS also reported that it had found limited instances of communications discussing trading of reference bank bills - bank accepted bills and negotiable certificates of deposit issued by banks designated as Australian Financial Markets Association Ltd 'Prime Banks' - with reference to the setting of the rate.
The regulator said that it has accepted an enforceable undertaking from RBS in relation to potential misconduct involving the benchmark rate. It added that the bank will make an AUD1.6 million voluntary contribution to fund independent financial literacy projects in Australia.
According to documents published on the regulator's website, RBS is taking "remedial measures" in the wake of the evidence. These include taking disciplinary action against staff involved in trying to influence the rates.
The regulator said that RBS cooperated fully with the investigation.
RBS shares were quoted in London down 0.2% at 318.60 pence.
By Samuel Agini; [email protected]; @samuelagini
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