Employee Liability and Bank Cooperation Lead to Reduced FCA Fine for Banque Havilland

1. A recent UK tribunal decision has reshaped the regulatory narrative around Banque Havilland, concluding that although individual misconduct occurred, the bank itself did not suffer a systemic or organisational integrity failure.
2. This follows years of scrutiny after the Financial Conduct Authority (FCA) accused the bank and several former employees of creating an elaborate scheme intended to destabilise Qatar’s economy.

Judge Finds No Organisational Integrity Failure

1. In a significant development, a UK judge ruled that “THERE WAS NO ORGANISATIONAL OR SYSTEMIC LACK OF INTEGRITY” at Banque Havilland—now renamed Rangecourt SA—despite the FCA’s allegations that employees had prepared a detailed plan to harm Qatar’s financial stability. [
2. This judgment stands in contrast to earlier regulatory findings that had attributed the misconduct directly to the bank.
3. Instead, the tribunal’s assessment suggests the wrongdoing was primarily driven by specific individuals rather than institutional policy or culture.

The Alleged Plan to Tank Qatar’s Economy

1. The FCA had previously asserted that
1. Former employees were responsible for drafting a presentation that outlined manipulative trading strategies aimed at pressuring the Qatari riyal and ultimately breaking its peg to the US dollar.
2. This strategy, which included proposals that could severely damage Qatar’s economy, was intended for marketing to Mubadala Investment Company, a UAE sovereign wealth fund.
2. Although the plan was never executed, the existence of this document became the cornerstone of the FCA’s enforcement action.

Reduced Penalty Following Cooperation and Employee Accountability

1. While the FCA initially sought a £10 million penalty against Banque Havilland, the tribunal ultimately reduced this to £4 million.
2. This outcome was influenced by two key factors:
1. Employee Liability – The tribunal attributed the majority of the misconduct to individual actors rather than the institution.
2. Bank Cooperation – Banque Havilland’s cooperation throughout the investigative process helped mitigate the severity of the final sanction.
3. The ruling underscores the weight regulators place on internal accountability and proactive cooperation, even in cases where serious market‑manipulation concerns arise.

Broader Implications for the Banking Sector

1. This decision highlights a growing regulatory emphasis on distinguishing between organisational misconduct and the actions of rogue employees.
2. Banks that can demonstrate strong governance and effective internal controls may find greater leniency, even when faced with allegations involving significant potential market impact.
3. At the same time, the ruling serves as a warning that individual actors—especially senior management—remain highly exposed to personal liability if they engage in unethical or unlawful behaviour.

Sources

Lexology Pro – Employee liability and bank cooperation lower Havilland FCA fine
https://www.lexology.com/pro/content/employee-liability-and-bank-cooperation-lower-havilland-fca-fine [lexology.com]

Yes — there are publicly accessible links to both the UK Upper Tribunal decision and the FCA’s official public statements. Here are the authoritative sources:

UK Tribunal Decision (Full Judgment)

The official Upper Tribunal (Tax and Chancery Chamber) decision is published by the UK Government as a PDF:

**Upper Tribunal Decision:

“Rangecourt SA (formerly Banque Havilland SA) & Others v FCA” — 3 February 2026**
🔗 PDF link:
https://assets.publishing.service.gov.uk/media/6981fbeee833d031a3158f91/Banque_Havilland_and_others_v_The_FCA_Final_Decision.pdf [assets.pub…ice.gov.uk]

This judgment includes:

• Full legal reasoning
• Discussion of employee vs institutional liability
• Findings related to integrity, conduct rules, and penalties
• Appendices containing disputed documents

FCA Public Statements

1. FCA Press Release (Upper Tribunal — 3 Feb 2026)

This is the FCA’s primary public statement following the tribunal’s ruling.
🔗 FCA Press Release:
https://www.fca.org.uk/news/press-releases/upper-tribunal-banque-havilland-plan-harm-qatari-economy [fca.org.uk]

Contains:

• FCA’s summary of the case
• Details of fines and bans
• FCA commentary on misconduct
• Background to the proposed penalties

2. FCA Enforcement Background (Earlier Notice)

Referenced in the tribunal documents:
🔗 FCA Warning Notice (1 Feb 2022)
(Linked from FCA materials, also referenced in Upper Tribunal’s document.) [fca.org.uk]