FCA bans former Barclays trader Carlo Palombo
The UK Financial Conduct Authority (FCA) has published its Final Notice as to Carlo Palombo.
The Authority makes an order prohibiting Carlo Palombo from performing any function in relation to any regulated activity carried on by an authorised or exempt person, or exempt professional firm.
Mr Palombo was convicted on 26 March 2019 of one count of conspiracy to defraud relating to EURIBOR submissions made at Barclays under his supervision; and was sentenced on 1 April 2019 to 4 years’ imprisonment.
It appears to the Authority that Mr Palombo is not a fit and proper person to perform any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm. His conviction demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform functions in relation to regulated activities.
On 26 March 2019 Mr Palombo was convicted at Southwark Crown Court of one count of conspiracy to defraud in respect of fixing EURIBOR. The single count upon which Mr Palombo was convicted involved him, between 1 January 2005 and 31 December 2009, whilst an employee of Barclays, conspiring with others to defraud in that knowing or believing that Barclays was party to trading referenced to the EURIBOR, and they dishonestly agreed to procure or make submissions of rates into the EURIBOR setting process by Barclays which were false or misleading.
On 1 April 2019, Mr Palombo was sentenced to four years’ imprisonment.
In light of Mr Palombo’s lack of fitness and propriety, the regulator considers it is appropriate to prohibit Mr Palombo from performing any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional person to advance the Authority’s consumer protection and integrity objectives.
In reaching this decision, the FCA has had regard to all relevant circumstances, including: the relevance and materiality of the offence; the fact that Mr Palombo has been convicted of an offence of dishonesty concerning financial crime and market manipulation; the passage of time since the facts underlying the conviction; the fact that the offence was committed whilst he was approved as an individual by the Authority; and the severity of the risk posed by Mr Palombo to consumers and financial institutions, and to confidence in the market generally.