“The head of Royal Bank of Scotland’s Japanese securities business is set to step down as regulators there move to sanction the UK-based lender in connection with the manipulation of benchmark interest rates.

“Ryusuke Otani, chief executive of RBS Securities Japan, is expected to announce his resignation this week, people close to the situation said.

“The move comes as the Japanese Financial Services Authority prepares to level a penalty on RBS over the Libor manipulation scandal and breaches of regulatory rules separating trading operations from retail banking.

“The watchdog was asked by the country’s Securities and Exchange Surveillance Commission earlier this month to take “administrative action” against RBS SJ. An announcement could come as early as this week.”

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