Former UBS Group AG traders Panagiotis Koutsogiannis and Arif Hussein lodged complaints with the U.K. Complaints Commissioner against the Financial Conduct Authority, claiming the regulator suppressed key evidence in an investigation into them regarding LIBOR manipulation, the Financial Times reported Dec. 19.
The FCA has been ordered by the commissioner to investigate its conduct regarding the two traders.
Legal documents showed that the two traders accused the FCA of "systemic failures," noting that it did not properly disclose that it was warned as early as 2009 by its U.S. counterparts regarding LIBOR rigging. Hussein claims the regulator also failed to properly comply with its disclosure obligations regarding a conversation with his supervisor in which he flagged concerns about people involved in the LIBOR-setting process, according to the report.
The FCA dropped the case against Koutsogiannis in 2015 after deciding there was insufficient evidence.
Separately, Hussein is also appealing the FCA's plan to ban him from participating in any regulated financial service.