FSA condemns weak controls at UBS that allowed rogue traders to flourish
Michael Herman reports:
The Financial Services Authority (FSA) has fined UBS £8 million for weak controls that allowed staff in its private bank to make thousands of unauthorised trades with clients’ money and then hide the losses. It is the third-largest fine awarded by the FSA.
Four private bankers in UBS’s London office were able to deal in foreign exchange and precious metals without permission for almost two years.
A UBS investigation found the four, who have not been named, were making up to 50 unauthorised trades a day across 39 client accounts between January 2006 and December 2007.
UBS refused to say how much had been lost through the rogue trades but confirmed that it has paid clients £26 million in compensation. The four individuals no longer work for UBS.
Read more in Times Online.