The Bank of Nova Scotia has agreed to make payments totalling US$127.5 million after it entered into a deferred prosecution agreement with the U.S. Department of Justice (DOJ) and the bank was levied three orders from the Commodity Futures Trading Commission (CFTC).
The announcement follows investigations into the bank’s activities and trading practices in the metals markets and related conduct as well as pre-trade mid-market marks and related swap dealer compliance issues.
Scotiabank agrees to terms
Under the terms of the resolutions, the bank agreed to the payments to the DOJ and CFTC as well as to retain an independent compliance monitor.
Scotiabank has fully reserved for the payments in prior quarters. Under one of the orders, the CFTC will defer proceedings to suspend or revoke Scotiabank’s provisional registration as a swap dealer subject to the bank's implementation of a remediation plan, among other conditions.
“At Scotiabank, we understand that in order to maintain the trust of our stakeholders, we must adhere to trading-related regulatory requirements and compliance policies. We are committed to adhering to these standards,” the bank said in a statement.
