The Securities and Futures Authority has reprimanded Sussex Futures following an investigation into i...
According to information supplied by the SFA, a customer of Sussex Futures was given permission by Sussex to trade under their name in August 1999, but lack of monitoring by the company led to serious losses.
Damage was done when Stephen Humphries overran his intra-day trading limit of 10 contracts and was unable to recover losses of £743,000.
Humphries of SPH Futures, is serving a three year nine month prison sentence for fraudulent trading, and Sussex Futures is no longer trading.
The SFA investigation found that during August 1999 Sussex Futures did not have adequate staff to monitor the trading of its office-based customers and failed to detect breaches of customers' intra-day limits.
Humphries who traded through his own firm, SPH Futures, was able to build up a position of 1129 contracts in the long gilt futures contract on LIFFE, a position that severely broke his intra day limit of 10 contracts.
The SFA ruled that John Sussex, managing director of Sussex Futures pay costs of £5,500 and senior executive officer David Stuart pay £2,750.
Consideration was given to the fact that Humphries had never given Sussex Futures any previous reason for concern and Mr Sussex arranged to cover the losses.
Events of August 1999 also took place around the time of the transition from floor to screen-based trading.
Taking the time to look
After 14-month FAS programme
More than half of people over the age of 55 see financial security as a top priority in retirement, yet a third allocate more time to buying a new car, research from Legal & General (L&G) has found.
Rebranded from OMW
Number of benefits