The Financial Conduct Authority (FCA) has revoked Carlo Palombo’s ban from the financial services industry and is ending its action against Tom Hayes following the recent Supreme Court judgment quashing their criminal convictions.
Both of these convictions formed the basis upon which the FCA took its action, with Palombo being banned from November 2022 and Hayes referring the FCA’s decision to the Upper Tribunal.
Last week, former UBS and Citigroup banker Tom Hayes, who was jailed for rigging Libor interest rates, has had his conviction overturned by the Supreme Court.
The Supreme Court quashed the conviction of Hayes, calling his original 2015 trial at Southwark Crown Court unfair.
The Court ruled: “Mr. Hayes was entitled to have his defence to the allegation that he agreed to procure false submissions as well as his denial that he had acted dishonestly left fairly to the jury.
“He was deprived of that opportunity by directions which were legally inaccurate and unfair.”
Hayes was originally handed a 14-year prison sentence and served five-and-a-half years in prison after his sentence was reduced to 11 years on appeal. He was released in 2021.
Former Barclays trader Carlo Palombo, who received a four-year sentence for manipulating Euribor, another benchmark rate, also had his conviction overturned. Palombo was also released in 2021.
The Serious Fraud Office, which prosecuted Hayes and Palombo and seven other bankers in the UK, said it would not seek a retrial.
The FCA has also said it will take no further action against either individual.
