The Financial Services Agency plans to take action including a business improvement order against RBS Securities Japan Ltd. for its involvement in manipulation of the London Interbank Offered Rate, sources said.
The FSA plans the measures since the Tokyo-based brokerage’s British parent, Royal Bank of Scotland Group, has acknowledged Libor manipulation through such outlets as its Japanese unit and agreed to pay $612 million in total penalties to U.S. and British authorities.
The Securities and Exchange Surveillance Commission has been investigating RBS Securities Japan since mid-November in cooperation with related authorities in the United States and Britain.
The SESC will soon recommend that the FSA take administrative action against the company, according to the sources.
So far, no evidence seems to have been found that the Tokyo Interbank Offered Rate was manipulated.
In December 2011, the FSA issued business suspension orders to Citigroup Global Markets Japan Inc. and UBS Securities Japan Co. for attempting to manipulate the Tibor.