Punished for Fixing Bidding Prices
The Financial Supervisory Service (FSS) announced on Jan. 13 that it has imposed sanctions on the Seoul branches of BNP Paribas Bank, Deutsche Bank, J.P. Morgan Chase Bank and Hong Kong & Shanghai Bank for their violation of laws and regulations related to forward exchange, currency swap and foreign exchange swap tenders.
According to the FSS, the Seoul branch of BNP Paribas Bank fixed its bidding prices through prior consultations with other banks in order to limit competition in two companies’ forward exchange contract tenders between April 7, 2011 and Nov. 7, 2014.
Between March 26, 2010 and Feb. 23, 2012, the Seoul branch of Hong Kong & Shanghai Bank acted in the same way or requested a change in price for the same purpose with regard to five companies’ forward exchange, currency swap and foreign exchange swap tenders.
“The Capital Markets Act and the Regulations on Financial Investment Business prohibit prior consultation-based fixing of bidding prices, transaction prices, terms of sale, commissions, and the like related to financial investment products,” the FSS explained, adding, “Direct or indirect request and coercion for the same purpose are prohibited as well.”
The Seoul branch of Deutsche Bank limited bidding competition with regard to similar contracts of seven companies between March 26, 2010 and Nov. 7, 2014. The Seoul branch of J.P. Morgan Chase Bank did so during its currency swap tender on May 4, 2010.