The Securities and Exchange Surveillance Commission asked the Financial Services Agency to take “administrative action” against RBS Securities Japan Ltd., the watchdog said in a statement in Tokyo today.
The recommendation comes two months after RBS’s Japan unit agreed to plead guilty to wire fraud as part of the Edinburgh- based bank’s $612 million settlement with U.K. and U.S. authorities for rigging the London interbank offered rate.
From around mid-2006 to early 2010, an RBS Securities trader and his colleagues asked employees responsible for making yen Libor submissions to change them to favor their derivatives transactions, the commission said. The conduct was “seriously unjust and malicious,” it said.
In a separate violation, the SESC said RBS Securities’ chief executive officer and chief operating officer received non-public customer information on bank branches of RBS and ABN Amro Bank NV from May 2008 to February 2010. The branches were consolidated in June 2009 as part of a takeover, it said.
RBS apologized to customers today, saying in a statement that it will take appropriate steps to address the issues raised.
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