Violation Tracker Individual Record
Company:
The Bank of Nova Scotia
Current Parent Company:
Scotiabank
Penalty:
$77,400,000
Year:
2020
Date:
August 19, 2020
Offense Group:
financial offenses
Primary Offense:
investor protection violation
Secondary Offense:
financial institution supervision failures
Violation Description:
The Commodity Futures Trading Commission issued two orders filing and settling charges against The Bank of Nova Scotia, a provisionally registered swap dealer, arising from manipulative and deceptive conduct, spanning more than eight years and involving thousands of occasions of attempted manipulation and spoofing in gold and silver futures contracts traded on the Commodity Exchange, Inc. (COMEX). The combined orders required BNS to pay a total of $77.4 million in penalties and equitable relief, including a record-setting $17 million for making false and misleading statements to CFTC staff during the investigation into the bank's spoofing and a total of $60.4 million for spoofing and attempted manipulation. In addition to monetary sanctions, the spoofing order required BNS to retain an independent compliance monitor. The annnoucement stated that a portion of the penalty would be offet by payments made to the Justice Department in a related case (see separate entry) but does not indicate how much.
Level of Government:
federal
Action Type:
agency action
Agency:
Commodity Futures Trading Commission
Civil or Criminal Case:
civil
HQ Country of Parent:
Canada
Ownership Structure of Parent:
publicly traded
Major Industry of Parent:
financial services
Specific Industry of Parent:
banking
Source of Data:
Source Notes:
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note:
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.
