SFO fails to charge Zespri after four-year investigation
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The SFO said that after a thorough investigation, it has concluded that there is no evidence of criminality in relation to this matter. The Bank had self-referred this matter to the SFO in November as the result of sfo closed forex investigation independent inquiry which the Bank itself commissioned in June The SFO opened an investigation on 16 December The events which the SFO investigated occurred nearly a decade ago.
In particular, the relevant Bank frameworks had not been designed to meet the extraordinary needs of markets and intermediaries at that time. They did not define a mechanism to support a banking system facing a sharp reduction in the liquidity of its key asset classes and a shortening in the term of its wholesale funding, and were also sfo closed forex investigation to stabilise overnight interest rates in these circumstances.
The Bank is proud of the dedication and professionalism displayed by its staff during the financial crisis. The Court of Directors of the Bank commissioned a rigorous and comprehensive review of other key market operations during the financial crisis. The review found no evidence of misconduct by any individual Bank employee.
The review resulted in a number of recommendations which the Bank has now implemented. The Bank is today releasing details of the Court-commissioned review and those recommendations. The lessons of the crisis and the results of Bank innovation are now embedded in a thoroughly overhauled and comprehensive framework for market operations.
The Bank has changed the operational design of specific market operations, which has significantly reduced the ability of participants to manipulate Bank operations. Sincethe Bank has also played a key role in addressing conduct and accountability issues in the wider financial sector. The Bank has also applied the core principles of the SMR to its own senior management. In a liquidity auction, the Bank will provide solvent counterparties with highly liquid assets, in sufficient size and at an appropriate term, in exchange for a wide range of collateral assets of good credit quality but lower market liquidity.
Lord Grabiner QC was commissioned in June to conduct an independent inquiry into certain liquidity auctions which took place during the financial crisis in and Given that the SFO has now completed a thorough and rigorous criminal investigation, it is not appropriate for the Bank to publish any further material.
The Bank has, for example:. Staff codes and policies. The Bank has also played a key role in addressing conduct issues across the financial sector and restoring trust in financial markets through, among other things:. In particular, and as noted above, the Bank has changed the operational design of specific market operations, which has significantly reduced the ability of participants to manipulate Bank operations.
Notwithstanding the significant improvements and reforms already made, the Bank continues to review the effectiveness of its operations. The creation of the Independent Evaluation Office IEO in September was an important initiative of the Bank's Strategic Plan, and part of the Bank's broader commitment to enhance its openness and accountability. This was a rigorous and comprehensive review of other key market operations potentially vulnerable to manipulation during the financial crisis.
The review looked at approximatelydocuments relating to 37 liquidity auctions between May and April The Bank informed the SFO that it was undertaking this review, the scope of which did not overlap with the matters under investigation by the SFO. On the advice of external counsel, the Bank did refer one matter, identified during the review, to the SFO. Between October and Januarythe Bank used the discretion available to it under the auction framework then in force to grant one concession to a systemically important institution which was at the time in grave financial difficulty and in receipt of emergency liquidity assistance.
As a result, the institution was permitted by sfo closed forex investigation Bank, exercising its discretion, to commit a greater proportion of a class of collateral than envisaged under the standard collateral concentration rules then in force.
This enabled the institution to place sfo closed forex investigation in the relevant auctions for a greater level of funds. Today, the Bank is releasing:. Sfo closed forex investigation investigation was extensive and examined events dating back to and The SFO made a number of information requests to which the Bank responded comprehensively. Each line of each invoice was subject to detailed interrogation. Updates on sfo closed forex investigation were then provided to the Court of Directors at its meetings to facilitate rigorous and regular oversight.
The Court of Directors discussed the investigation on 22 occasions from June onwards. Again, these costs were monitored by the Bank's Legal Directorate on behalf of the Sfo closed forex investigation of Directors, with updates provided to the Court of Directors at its meetings. The fees sfo closed forex investigation the independent inquiry led by Lord Grabiner QC are set out here:. Sfo closed forex investigation SMF Terms and Conditions in effect at October stated the Bank could amend or vary the Terms and Conditions and Operating Procedures at any time and that that provision might be used, for example, to enable the Bank to respond to a contingency, such as a major operational or financial disruption.
Statement on SFO liquidity auction investigation announcement The Serious Fraud Office SFO has sfo closed forex investigation today that it has closed its investigation into the conduct of liquidity auctions held by the Bank of England during the financial crisis in and Published on 23 June Bank of England liquidity auctions - News Release 23 June Given that the SFO has now completed a thorough and rigorous criminal investigation, it is not appropriate for the Bank to publish any further material.
The Bank has, for example: These policies can sfo closed forex investigation viewed here: Staff codes and policies The Bank has also played a key role in addressing conduct issues across the financial sector and restoring trust in financial markets through, among other things: Today, the Bank is releasing: The fees for the independent inquiry led by Lord Grabiner QC are set out here: Convert this page to PDF. Would you like to give more detail? What did you think of this page?