FCA bans 'dishonest' broker over wash trades
The FCA has banned a broker from performing any regulated financial activity after he arranged nine wash trades to obtain unwarranted brokerage payments.
"There was no legitimate reason for Mr Farr to make these trades and his actions were motivated by greed."
The FCA found that former Martins Brokers staff member, Terry Farr, "acted dishonestly and lacked integrity" by arranging the wash trades for his own personal financial gain.
As a consequence of the wash trades, Martins received unwarranted brokerage of £258,151.09, increasing the bonus pool available to Farr and his colleagues on the JPY Desk.
The FCA commenced its investigation into Mr Farr in 2011, however the investigation was suspended due to the criminal investigation and ensuing prosecution of Farr by the Serious Fraud Office for alleged conspiracy to defraud in relation to the Yen LIBOR rate submissions.
Farr was acquitted at the conclusion of the trial on 27 January 2016.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: "There was no legitimate reason for Mr Farr to make these trades and his actions were motivated by greed. His actions mean he has no place in financial services.
"Today’s ban reflects our commitment to making sure that people working in financial services act with integrity."
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