UBS fined for failing to control rogue staff

Switzerland's UBS bank has been fined £8 million (SFr13.5 million) by Britain's financial watchdog for allowing unauthorised trading by four of its employees.

This content was published on November 5, 2009 - 15:58

The Financial Services Authority (FSA) said on Thursday that "systems and controls failures" by the bank had enabled staff to use customer money to trade foreign exchange and precious metals, and to allocate the losses to customers' accounts.

The trades, which took place between January 2006 and December 2007 and involved at least 39 accounts, were brought to light by a whistleblower. The staff involved were employed at the bank's London-based wealth management centre.

UBS said it "deeply regretted" the incident, and had taken "full remedial action". It cooperated with the FSA investigation, and agreed to settle at an early stage, which qualified it for a 20 per cent reduction in the fine.

The FSA said UBS had paid customers more than $42 million to compensate them for their losses.

The fine was the third largest ever imposed by the authority. and agencies

This article was automatically imported from our old content management system. If you see any display errors, please let us know:

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?