Former broker banned by watchdog over Libor-rigging scandal

The City watchdog has banned a former broker from financial services over the Libor-rigging scandal, 10 years after it took place.

Terry Farr, who formerly worked at Martin Brokers, was judged “not fit and proper” to be involved with any regulated activity, the Financial Conduct Authority (FCA) said.

The ban relates to nine so-called “wash trades” – risk-free trades that cancel each other out – which were arranged by Mr Farr between September 19 2008 and August 25 2009.

The purpose of the wash trades, according to the FCA, was to obtain unwarranted brokerage payments for Martin with no legitimate commercial purpose.

The firm received £258,151.09 as a result of the actions, thereby increasing the bonus pool available to Mr Farr and his colleagues.

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.”

The FCA first opened its investigation into the scandal in 2011 but it was put on hold after the Serious Fraud Office (SFO) opened its own inquiry and launched a legal case.

Mr Farr and five others were acquitted of the charges in 2016.