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Thursday, November 05, 2009

U.K. Fines UBS $13.2 Mln Over Unauthorized Trades

By Simon Kennedy

MarketWatch Pulse

LONDON -- The U.K. Financial Services Authority said Thursday that it has fined Swiss bank UBS 8 million pounds ($13.2 million) for failing to stop four employees from carrying out unauthorized trades involving customer money on at least 39 accounts. The regulator said the trades took place between January 2006 and December 2007 and only came to light when a whistleblower raised concerns internally. It said UBS employees had taken part in the trading of foreign exchange and precious metals using customer money without authorization and allocated losses to customer accounts. As many as 50 unauthorized trades were taking place every day at the operation's peak. The FSA said it's the third largest fine it has ever imposed and added UBS has paid more than $42 million in compensation to its customers.

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