UK watchdog warns Banque Havilland over Qatar bonds' presentation

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Britain's Financial Conduct Authority (FCA) said on Tuesday it had warned Luxembourg-based Banque Havilland over a 2017 presentation by the bank that the regulator said included advice on "manipulative" practices in trading Qatari bonds.

FCA said in a notice that its warning, issued in October 2021, stated the bank had breached the body's principles for businesses by creating and disseminating the document.

There is usually a lag in publishing details of the FCA's enforcement cases to allow those involved to contest any allegations.

The presentation "set out a number of steps which could be taken to harm the economy of Qatar by using manipulative trading practices aimed at creating a false, or misleading, impression as to the market in or the price of Qatari bonds," the FCA said.

The FCA said the presentation gave "improper advice".

The Qatari authorities did not immediately respond to a Reuters request for comment.

Banque Havilland said in an emailed statement that the FCA's warning notice statement (WNS) referred to historic allegations of misconduct at the bank's London premises in 2017.

"Currently, no findings have been made by the FCA and the matters referred to in the WNS are being challenged by the bank through the FCA's internal process," the bank said, adding that no individuals referred to remained at the bank.

The bank said it would not offer further comment while the FCA internal process continued.

Banque Havilland denied in 2019 taking any action designed to weaken Qatar's economy after Doha filed lawsuits against three banks, including Havilland, in London and New York accusing them of overseas currency manipulation.

The lawsuits were filed during a period of regional tension after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt imposed a boycott on Qatar in mid-2017. The diplomatic dispute was resolved in January 2020.

As part of that agreement, Qatar agreed to terminate all legal battles connected to the dispute.

The spokesperson for Banque Havilland confirmed that the civil action brought by the State of Qatar in London "has been settled on a confidential basis".

FCA said Banque Havilland and those involved had the right to make representations to its Regulatory Decisions Committee which would decide on the appropriate action and whether to issue a decision notice.

Source: Reuters / Reporting by Saeed Azhar; Editing by Edmund Blair