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
1 minute
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.
swissinfo.ch and agencies
Popular Stories
More
Foreign affairs
Why Swiss trams have become sought-after vehicles in Ukraine
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Battered image continues to haunt UBS
This content was published on
Despite downsizing, reducing exposure to risky assets and completely revamping its leadership structure, UBS appears unable to stem the outflow from its flagship wealth management business. The beleaguered bank saw rich individuals, families and institutional clients withdraw SFr36.6 billion ($35.5 billion) in the last three months. These startling figures overshadowed the group’s overall financial performance…
This content was published on
The net loss of SFr564 million ($542 million) reported on Tuesday followed higher-than-expected accounting charges of SFr2.15 billion. It is the second quarterly loss under new chief executive Oswald Grübel. The bank said the accounting charges resulted from currency exchange loss from the sale of its Brazilian unit UBS Pactual, and the conversion of mandatory…
This content was published on
The flow of offshore assets, especially from the United States, is dwindling away, but Swiss banks are well positioned to take advantage of the fastest growing wealth market in the world. The Swiss private banking industry had already begun to shift its focus to onshore activities in prosperous regions before it had felt the full…
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 english@swissinfo.ch.