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Screenshot of a breaking news alert e-mail from Q2 2017
UK’s Financial Conduct Authority (FCA) today announced its decision regarding Kweku Mawuli Adoboli, a former trader at UBS AG (SWX:UBSN).
The FCA bans Mr Adoboli from performing any function in relation to any regulated financial activity, as he abused his position as a senior trader of UBS causing the firm losses amounting to US$2.25 billion.
On 20 November 2012, Kweku (Kwaku) Adoboli was convicted of two counts of fraud by abuse of position. The FCA referred to this conviction and the resulting prison sentence, to state that Mr Adoboli has demonstrated “a clear and serious lack of honesty and integrity”.
In making its decision, the FCA has taken into account all the relevant circumstances and the severity of the risk posed by Mr Adoboli to consumers and financial institutions, and to confidence in the market in general.
In November 2012, the Financial Services Authority (FSA), the predecessor of the FCA, imposed a fine of £29.7 million on UBS AG for systems and controls failings that permitted Mr Adoboli, then an employee at the bank, to cause substantial losses totalling US$2.3 billion as a result of unauthorized trading. The systems and controls failings have revealed serious weaknesses in the bank’s procedures, management systems and internal controls.
The unauthorised trading had been carried out between June 1, 2011 and September 14, 2011 on the Exchange Traded Funds Desk in the Global Synthetic Equities (GSE) trading division conducted from the London Branch of UBS. The losses were incurred mainly on exchange traded index future positions.
To view the full announcement from the FCA, click here.