UBS fined £29.7m over rogue trader losses
The FSA said in a statement that UBS’ systems and controls had failed to prevent trader Kweku Adoboli racking up $2.3bn of losses.
UBS’ fine – which had been expected to climb as high as £50m – was reduced from £42.4m because it opted to settle early.
It comes after Adoboli himself was sentenced to seven years in jail for his actions.
He was accused of carrying on unauthorised trades in excess of authorised risk limits, concealing his exposure via fictitious hedges and hiding some of his profits so he could funnel them back into official accounts.
Despite arguing he could not have operated without the knowledge of his superiors, the jury found the trader guilty of fraud.
The discount to UBS’ fine means it is well below the record penalty levied against a firm.
Barclays continues to hold this unwanted title, after it was hit with a £59.5m fine earlier this year for its part in the LIBOR rigging scandal.