City brokerage Icap hit with €15m European Commission fine over Libor-fixing scandal

Icap, the broking giant founded and run by former Conservative party treasurer Michael Spencer, has been fined €15 million (£11.2 million) by the European Commission for colluding in the Libor-fixing scandal and breaking cartel rules.

But Icap immediately said it would challenge the fine on the grounds that it was a regulatory matter not a competition issue.

It said in a statement: "ICAP does not accept the EC’s decision, which it believes is wrong both in fact and in law. This is a regulatory matter that has already been settled."

"It is not a competition issue, and the EC has presented no evidence that ICAP facilitated a competition law violation."

It has already paid £55 million to the Financial Conduct Authority and the US Commodity Futures Trading Commission over yen Libor rigging.

“Today’s decision to fine the broker Icap sends a strong signal that assisting companies in their cartel activities has severe consequences,” said Competition Commissioner Margrethe Vestager.

“It marks the successful completion of our antitrust investigation in the yen interest-rate derivatives sector — but not the end to our efforts to fight anticompetitive practices in financial markets.”

Icap said it would challenge the fine in the European Courts.