Bank of Nova Scotia to pay USD127.4m CFTC penalty for spoofing, false statements, compliance and supervision violations

Source: Institutional Asset Manager 2020-08-21

The Commodity Futures Trading Commission (CFTC) has issued three orders filing and settling charges against The Bank of Nova Scotia (BNS), a provisionally registered swap dealer, resolving two separate enforcement actions.

The combined orders require BNS to pay USD127.4 million for spoofing and making false statements, as well as for swap dealer compliance and supervision violations and additional false statements.

“These record-setting penalties reflect not only our commitment to being tough on those who break the rules, but also the tremendous strides the agency has made in data analytics. Our ability to go through the electronic order book and look across markets has enabled the CFTC to not only spot misconduct, but also to uncover false and misleading statements,” says CFTC Chairman Heath P Tarbert. “Over the last year, we have ushered in a new era of enforcement at the CFTC. Wrongdoers now have increasingly fewer ways to conceal their misconduct and face an even more unified front from civil and criminal authorities.”

“Entities seeking to cooperate with the CFTC, like all others that interact with the Commission, must tell the truth,” adds Division of Enforcement Director James McDonald. “We now have the tools, including through the development of our data-analytics program, to better test and verify the information we receive. When entities are not completely truthful, they will be penalised.”

“BNS’s compliance and supervision violations highlight the need for all swap dealers to have the right tone at the top—plus appropriate programs and incentives in place—to instil a meaningful culture of compliance among their personnel,” added Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling. “The CFTC will continue to apply rigorous oversight to all registrants, and firms will be referred to enforcement whenever there is a strong indication that our rules may have been broken.”

U.S. Commodity Futures Trading Commission

Compliance

payment

Fine

Bank of Nova Scotia to pay USD127.4m CFTC penalty for spoofing, false statements, compliance and supervision violations

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