UBS to face Hong Kong interest rate misconduct probe

Hong Kong is investigating UBS over the Asian financial center’s benchmark interest rate.

The announcement by the Hong Kong Monetary Authority, the city’s de facto central bank, comes a day after UBS agreed to pay US$1.5 billion in fines for trying to manipulate a key interest rate affecting borrowers globally.

The authority said that it has launched a probe to determine whether there was any wrongdoing by UBS when it submitted information used to set the Hong Kong Interbank Offered Rate.

It will also try to find out if the misconduct had any “material impact” on setting the rate, known as HIBOR.

The authority said it was tipped off by other regulatory authorities about the possible misconduct involving the rate and other key ones in the region.

UBS said it will “work closely with various regulatory authorities to resolve issues relating to the setting of certain global benchmark interest rates.”

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