11th Oct 2019 07:56
(Alliance News) - Interdealer broker TP ICAP PLC on Friday said Tullett Prebon (Europe) Ltd has agreed to pay GBP15.4 million to settle a UK regulatory probe into some historical trades.
In November 2015, Tullett agreed to buy the global hybrid voice broking and information business of broker ICAP, now known as NEX Group PLC. The combined business was subsequently renamed as TP ICAP in December 2016.
Tullett has entered into a settlement agreement with the UK Financial Conduct Authority in relation to an investigation into certain trades undertaken between 2008 and 2011, parent TP ICAP said.
The regulator found former managers at TP ICAP's Global Broking division and Compliance department "failed to act with due skill, care and diligence", and also said there were "inadequate systems and controls in place to deal with the risk of improper broker conduct".
The investigation also related to a failure in 2011 by Tullett to find certain audio files and give them to the FCA in a timely manner, together with the account given by Tullett as to how those files were discovered, TP ICAP said.
The GBP15.4 million settlement fine will be included as an exceptional item in TP ICAP's 2019 results.
"We are pleased to put this historical matter behind us. None of the individuals involved in the relevant broking activities remain with our firm, which has long since taken the opportunity to significantly enhance its systems and controls to comply with regulatory expectations," said TP ICAP Chief Executive Nicolas Breteau.
By Tapan Panchal; [email protected]
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