FCA Fines and Bans 2 Former RP Martin Executives


ATOZ FOREX LONDON – British regulator Financial Conduct  Authrity FCA fined and banned 2 Former RP Martin Executives for cultural and compliance failure. Martin Brokers  were fined £630,000 for misconduct relating to the London Interbank Offered Rate (LIBOR).

The FCA of Britain levied a fine of £210,000 which is $317,000, against David Caplin, the Martin’s former chief executive, and another fine of £105,000 against Jeremy Kraft, the former compliance officer.

In addition to financial fines Mr. Caplin and Mr. Kraft are now also banned from performing any “significant influence functions” witin financial services industry according to the regulator.

According to the FCA statement “Mr. Kraft and Mr. Caplin were responsible for setting the right culture at Martins and ensuring that the firm’s risk management systems and controls were adequate to oversee its broking activities,”  in the statement the FCA’s acting director Georgina Philippou continues that  “They failed to do this.” and that “Both individuals also ignored obvious risks such as the risk that brokers would give or accept inducements.”

She continued: “This case and other recent Significant Influence Function (SIF) outcomes should serve as a warning to everyone that holds a significant influence function that if a firm’s misconduct can be attributed to cultural failings, then we expect senior management to answer for this.”

FCA has a 30% discount policy for early settlement agreements, which Martin’s executives Mr. Caplin and Mr. Kraft benefited to reduce their fine amount by £90,000 and £45,000 respectfully.

In May2014, Martin agreed to pay $1.2 million in penalties to settle CFTC accusations in the US related Libor manipulation which was tied to the JPY.

Additionally the FCA fined RP Martin by £630,000 due to conduct by employees at its Martin Brokers unit. According to the statement RP Martin, under Mr. Caplin’s leadership, had a culture that put profits ahead of regulatory compliance.

Source: FCA UK news announcements

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