TP ICAP (LON:TCAP) announced that its subsidiary, Tullett Prebon (Europe) Limited has entered into a settlement with the Financial Conduct Authority with respect to an investigation in relation to certain trades undertaken between 2008 and 2011.
The FCA found that certain former managers in TP ICAP’s Global Broking Division and in TP ICAP’s Compliance Department failed to act with due skill, care and diligence. It also found that at the time there were inadequate systems and controls in place to deal with the risk of improper broker conduct.
The investigation also related to the circumstances surrounding a failure in 2011 by TPEL to discover certain audio files and produce them to the FCA in a timely manner, together with the account given by TPEL to the FCA as to how those files were discovered.
TPEL has agreed to pay a total sum of £15.4m and has entered into a Settlement Agreement with the FCA. The settlement will be reported as an exceptional item in TP ICAP’s 2019 full year financial results.
The FCA recognised that TPEL fully cooperated with the investigation into the relevant trades and conducted its own review of certain trades which it disclosed to the FCA.
Commenting on the settlement, Nicolas Breteau, Chief Executive Officer of TP ICAP said:
“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.”