Scotiabank Settles With DOJ, CFTC; To Pay $127.5 Mln Fine For Unfair Trading Practices

(RTTNews) - Canadian lender Bank of Nova Scotia (BNS.TO, BNS), called as Scotiabank, Thursday said it has entered into a Deferred Prosecution Agreement or DPA with the U.S. Department of Justice. Further, the Commodity Futures Trading Commission or CFTC issued three separate orders against Scotiabank.

The DPA and the orders resolve the DOJ's and CFTC's investigations into Scotiabank'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.

Under the agreement terms, the Bank agreed to make aggregate payments to the DOJ and CFTC of approximately $127.5 million. It also agreed to retain an independent compliance monitor.

In its statement, the Bank said it has fully reserved for the payments in these Resolutions in prior quarters.

Under one of the orders, the CFTC will defer proceedings to suspend or revoke the Bank's provisional registration as a swap dealer subject to the Bank's implementation of a remediation plan, among other conditions.

The bank said, "...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."