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UBS faces action by UK and Swiss regulators
The FSA has started enforcement proceedings against investment bank UBS in relation to trading losses in the bank’s London operations, the regulator has announced.
It follows an announcement last year by the Swiss Financial Market Supervisory Authority, along with the FSA, that the regulators were investigating incidents.
The City watchdog’s statement said: “The FSA has now commenced a formal enforcement investigation against UBS and is in close contact with FINMA which has also commenced enforcement action against UBS.”
A statement by FINMA said: “In September 2011, FINMA announced that, along with the UK FSA, it was jointly launching an independent investigation into the events surrounding trading losses incurred by UBS AG (UBS) in the London operations of its investment bank.
“FINMA has now initiated formal administrative enforcement proceedings against UBS under Swiss law and is in close contact with the FSA which has also commenced a formal enforcement investigation against UBS.
“FINMA will assess and rule upon the adequacy of the controls that were in place to prevent and detect unauthorised trading within the investment bank and its compliance with the Banking Act, the Stock Exchanges and Securities Trading Act and related regulations.”
It said it does not expect to publish further information before the outcome of enforcement proceedings.
UBS rogue trader Kweku Adoboli was charged with alleged fraud in September by abuse of position and false accounting after being accused of losing $2bn (£1.3bn) in unauthorised trades.
