SFO investigations
Reform


SFO investigations

In March 2016 the Serious Fraud Office (SFO) announced that it was closing its investigation into the manipulation of the foreign exchange market, stating that there was insufficient evidence to bring criminal charges. Tom Hayes, who was sentenced in August 2015 to 14 years in prison (reduced to 11 years on appeal), continues to challenge his conviction.

The SFO's Euro Interbank Offered Rate (Euribor) investigation continues, despite the setback suffered in May 2016 that key individuals charged with conspiracy to defraud – who were due to stand trial in September 2017 – cannot be extradited from Germany, leaving the SFO with no prospect of securing their return to the United Kingdom other than by voluntary surrender.

Reform

On September 28 2016 the European Central Bank (ECB) announced plans (to be implemented in 2017) to reform the calculation of the Euribor benchmark from a quote-based to a transaction-based index. In doing so, the ECB aims to guarantee the integrity of reference rates which are important not only to direct market participants, but also the general public.

For further information on this topic please contact Kathleen Harris, Stuart Baker, Michael J Atkinson or James McSweeney at Arnold & Porter LLP by telephone (+44 20 7786 6100) or email (kathleen.harris@aporter.com, stuart.baker@aporter.com, michael.atkinson@aporter.com or james.mcsweeney@aporter.com). The Arnold & Porter website can be accessed at www.arnoldporter.com.

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