Antitrust Law Daily Wrap Up, ANTITRUST NEWS: RBS Canada Drops Challenge to Order That It Produce Records in LIBOR Rate Investigation, (Jun 3, 2013)

By Tobias J. Gillett, J.D., LL.M.

The Canadian affiliate of The Royal Bank of Scotland Group (RBS Canada) has dropped its challenge to an order of the Ontario Superior Court of Justice (SCJ) requiring it to produce certain records to the Canada Competition Bureau, and must now produce the disputed documents, the agency has announced.

On May 18, 2011, the SCJ ordered the Canadian affiliates of banks under investigation, including RBS Canada, to produce various records located outside of Canada. RBS Canada filed an application in the court seeking an interim stay of the order. RBS Canada challenged the court’s interpretation of Section 11 of the Competition Act and contended that the order contravened the Charter of Rights and Freedoms.

Following its decision to abandon its opposition to the order, RBS Canada must now comply with the order by June 28, 2013. The Competition Bureau has stated that RBS Canada’s decision will permit it to move forward with its investigation, and that it may seek recovery of the costs expended in responding to RBS Canada’s application.

On February 6, 2013, the Department of Justice announced a $612 million settlement resolving charges from the United Kingdom Financial Services Authority (FSA), the U.S. Commodity Futures Trading Commission (CFTC), and the U.S. Department of Justice that The Royal Bank of Scotland plc and RBS Securities Japan Limited participated in a rate rigging scheme involving the London Interbank Offered Rate (LIBOR), the premier benchmark for short-term interest rates. RBS agreed to the settlement and pled guilty to felony wire fraud in exchange for a deferred prosecution agreement. The charges and deferred prosecution agreement were filed in the federal district court in Hartford, Connecticut on April 12, 2013.

Companies: Royal Bank of Scotland Group; RBS Canada

News: Antitrust