18 December 2017
visit http://response.ncr.com

FSA fines Seymour Pierce for employee fraud

08 October 2009  |  4315 views  |  0 FSA

Seymour Pierce has been fined £154,000 by the UK's Financial Services Authority (FSA) for failing to prevent an employee stealing from the stockbroker and its clients.

The watchdog says the City firm failed to establish effective controls to guard against employee fraud, enabling the staffer to steal around £150,000 "completely undetected" in 36 separate transactions over a three year period.

The illicit transactions involved changing names, addresses and bank account details on clients' accounts as well as using dormant internal accounts. On one occasion he also transferred a personal trading loss into one of Seymour Pierce's internal accounts.

The fraud was only discovered after the employee had been fired for a separate offence and his replacement noticed accounting discrepancies.

Margaret Cole, director, enforcement and financial crime, FSA, says: "This is a serious failure on Seymour Pierce's part. The frauds were not sophisticated and could have been detected at a much earlier stage if the proper procedures had been in place."

The firm qualified for a 30% discount on the fine for agreeing to settle at an early stage.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

FSA finalises far-reaching overhaul of UK liquidity regulation

FSA finalises far-reaching overhaul of UK liquidity regulation

05 October 2009  |  5764 views  |  1 comments
Citi, UBS and Deutsche Bank fined over outsourced IPO communications

Citi, UBS and Deutsche Bank fined over outsourced IPO communications

22 September 2009  |  6413 views  |  0 comments
Barclays fined £2.45 million for transaction reporting failures

Barclays fined £2.45 million for transaction reporting failures

08 September 2009  |  8107 views  |  0 comments
FSA looks into high-frequency trading and dark pools

FSA looks into high-frequency trading and dark pools

04 August 2009  |  12722 views  |  3 comments
FSA fines HSBC units £3.2m for losing customer data

FSA fines HSBC units £3.2m for losing customer data

22 July 2009  |  8481 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.niceactimize.comvisit www.response.ncr.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11136 views comments | 3 tweets | 2 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
9693 views comments | 20 tweets | 21 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7678 views comments | 19 tweets | 22 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7255 views comments | 6 tweets | 26 linkedin
Digital banking startup Loot secures £2.2 million seed roundDigital banking startup Loot secures £...
7176 views comments | 5 tweets | 11 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job