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Japan orders RBS to boost compliance after rate manipulation

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(Globalpost/GlobalPost)

TOKYO (Reuters) - Japan's financial industry regulator ordered Royal Bank of Scotland's <RBS.L> Tokyo-based investment bank to bolster compliance after finding employees had sought to manipulate interest rates to profit on derivative trades.

The Financial Services Agency's order to RBS Securities Japan is the latest punishment meted out by a regulator in the wake of a global scandal over the rigging of The London Interbank Offered Rate (Libor) and other benchmark rates.

The head of its Japanese investment bank will leave RBS following the investigations by Japanese authorities, a source familiar with the matter said on Thursday.

RBS was fined $612 million (398 million pounds) by U.S. and British authorities in February to settle allegations it manipulated benchmark interest rates. As part of that settlement, RBS' Japan unit agreed to plead guilty to one count of wire fraud in relation to yen Libor.

(Reporting by Nathan Layne; Editing by Edwina Gibbs)

http://www.globalpost.com/dispatch/news/thomson-reuters/130412/japan-orders-rbs-boost-compliance-after-rate-manipulation