Denmark FSA closes investigation on CIBOR rates manipulation

The Danish FSA has finalised its’ investigation of the Copenhagen Interbank Offered Rates (CIBOR) for the period from 2009 to 2012. The investigation found no grounds to instigate cases for violations of the Competition Act or the Criminal Code.

The investigation reviews CIBOR setting in the period from 1 January 2009 to 31 December 2012 and is based on internal documents provided by the Danish Cibor-quoting institutions.

The documents comprise correspondence, internally and between CIBOR institutions, in the form of emails, chat messages, letters and recorded telephone conversations on an extensive number of selected dates, as well as internal and external audit reports.

In its review of the institutions’ internal documents, the Danish FSA found neither documentation of violations of the law nor evidence of individual or coordinated activities of a manipulative character.

Thus, on the basis of the investigation, the Danish FSA found no basis for transferring cases concerning violations of the Competition Act or the Criminal Code to the Danish Competition and Consumer Authority or the Public Prosecutor for Serious Economic and International Crime, respectively.

This outcome represents a contrast to the likely findings of the Financial Conduct Authority in Britain with regard to the high profile FX rate manipulation allegations against many multinational financial giants whose headquarters are based in London, with many banks now setting aside vast sums to appease the regulator should action be taken against them.

For the full report from the Danish FSA, click here.

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