Swiss Bank UBS: Slapped with an £8m fine

Swiss bank UBS (NYSE:UBS) have been given a body blow by the FSA, after it was discovered that four of the bank’s employees were able to use customer money to trade in currencies and metals markets.

The bank have been given an £8m fine, which is the third largest fine levied by the City regulator. As a result of the trading activity, the bank has been forced to pay compensation of more than $42m (£25.2m) although the FSA established that it had not itself profited from the trading.

FSA director of enforcement and financial crime Margaret Cole, said the fine was set at a high level as a deterrent to others: “The penalty, one of the largest fines we have levied, reflects our tougher enforcement stance and our policy of imposing steep penalties to achieve credible deterrence.”

The FSA concluded that UBS had failed to manage and control key risks. “UBS deeply regrets this incident and, having fully co-operated with the FSA’s investigation, we are now pleased that this matter has been settled so we can move forward” the bank said. This has come at a bad time for the bank, which has just announced its first positive quarter in more than two years.

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