Japan's Financial Services Agency has ordered the Royal Bank of Scotland's Tokyo-based investment bank to overhaul its compliance procedures, after the bank pleaded guilty to criminal charges. A number of employees were found to have sought and colluded to manipulate interbank lending rates.
According to a statement on the regulator's website, the FSA ordered RBS Securities Japan Limited to improve its compliance functions, which includes "clarifying the responsibility of the management and staff regarding [rate manipulation] and take preventive measures against recurrence of [Libor rigging]."
The FSA has also forced the unit to submit a report to the regulator by May this year, and every three months thereafter, in order to prove it is planning and implementing a change to its compliance procedures.
In February this year, RBS agreed to pay £390m ($612m / €451m) to settle US and UK charges related to the manipulation of the benchmark lending rate known as Libor, as well as pleading guilty to a criminal charge of wire fraud from a Japanese subsidiary.