Complaints Commissioner – London Whale’s expectations not managed by FCA during enforcement – 18th July 2017

The Financial Conduct Authority (FCA) failed to manage JPMorgan trader Bruno Iksil’s expectations regarding its preliminary investigation report during an enforcement investigation, the Complaints Commissioner found. The FCA’s complaints team took far too long to issue a decision on the complaint of Iksil, who had worked for trader Achilles Macris at the bank. Iksil, the London Whale, who ran up $6.2 billion in trading losses in 2012, claimed he had been identified by his position within the firm in JPMorgan’s final notice, the Commissioner’s decision said. In a previous March 2017 judgment, not referred to in the Commissioner’s decision, the Supreme Court found Macris had not so been identified. “In my preliminary decision, I raised the possibility of a small ex gratia payment for the delay, if you wished to receive it, but you have not responded to that suggestion,” said Antony Townsend, the Complaints Commissioner, in his finalised decision just published on Iksil’s complaint.

 

 

Alex Davidson, Regulatory Intelligence