The Royal Bank of Scotland (RBS) has been served with a £87.5m fine for misconduct relating to the London Interbank Offered Rate (LIBOR).

The Financial Services Authority (FSA) said that the bank's breaches encompassed a number of issues, involved a number of employees - in the UK, Japan, Singapore and the US - and occurred over a number of years.

At least 219 requests for inappropriate submissions were documented, between January 2006 and November 2010 with 21 individuals including derivatives and money market traders and at least one manager being involved in the inappropriate conduct.

The FSA point out that RBS failed to identify and manage the risks of inappropriate submissions and encouraged a business model allowing traders to hold too much influence over the LIBOR submitters.

Tracey McDermott, director of enforcement and financial crime, said: 'The integrity of benchmark reference rates such as LIBOR is of fundamental importance to both UK and international financial markets. The findings set out in our notice today demonstrate a failure by RBS to take that wider context into account.

"The failures at RBS were all the more serious because of the attempts not only to influence the submissions of RBS but also of other panel banks and the use of interdealer brokers to do this.

RBS agreed to settle at an early stage of the investigation and therefore qualified for a 30% discount under the FSA's settlement discount scheme. Without the discount the fine would have been £125 million.