04 September 2015

UK and Swiss watchdogs launch formal investigations into UBS over trading scandal

03 February 2012  |  4054 views  |  0 adoboli ubs

UK and Swiss regulators have launched formal proceedings against UBS over the £2.3 billion unauthorised trading loss made at the bank last year.

In September UBS revealed that it had discovered a potential loss of $2.3 billion thanks to unauthorised trading by a London-based employee at its investment bank.

The UK's Financial Services Authority and the Swiss Financial Market Supervisory Authority (Finma) immediately announced an independent investigation into the matter.

The FSA now says it has commenced a formal enforcement investigation against UBS and is in close contact with Finma which has begun its own enforcement action.

Says a statement from the latter: "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 their compliance with the Banking Act and the Stock Exchanges and Securities Trading Act and related regulations."

Meanwhile, the trader accused of making the loss, Kweku Adoboli, was today refused bail by a London court having earlier this week pleaded not guilty to charges of fraud and false accounting. The trial date is set for September.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

30 January, 2012
01 December, 2011
26 October, 2011
25 October, 2011
06 October, 2011
16 September, 2011
15 September, 2011

Related company news

Your browser is unable to support Flash files.

Who is commenting?

Finextra Member Commented on: HSBC to rebrand Britsh...
Finextra Member Commented on: Zapp to use behavioura...

Top topics

Most viewed Most shared
Third of Brits expect day-to-day mobile pa...
8353 views comments | 39 tweets | 15 linkedin
Payments UK sets out vision for 'world cla...
6889 views comments | 17 tweets | 10 linkedin
Swedish mPOS firm iZettle raises EUR60m fo...
6198 views comments | 13 tweets | 8 linkedin
HSBC glitch leaves thousands of customers...
6124 views comments | 13 tweets | 7 linkedin
UK boosts contactless limit to £30
5666 views comments | 31 tweets | 20 linkedin

Featured job

Circa £100K Basic OTE £200K+ NO CEILING
London based with substantial travel in the Benelux Region

Find your next job