The Financial Services Authority (FSA) has fined UBS (UBS) £29.7m for systems and controls failings that allowed an employee to cause substantial losses totalling US$2.3bn as a result of unauthorised trading.
The fine was discounted from £42.4m for early settlement. The trader, Kweku Adoboli, has been convicted of two counts of fraud by abuse of position and sentenced to seven years’ imprisonment. The systems and controls failings revealed serious weaknesses in the firm’s procedures, management systems and internal controls.
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