17 August 2017
Find out more

FSA fines Seymour Pierce for employee fraud

08 October 2009  |  4235 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  |  5693 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  |  6345 views  |  0 comments
Barclays fined £2.45 million for transaction reporting failures

Barclays fined £2.45 million for transaction reporting failures

08 September 2009  |  7842 views  |  0 comments
FSA looks into high-frequency trading and dark pools

FSA looks into high-frequency trading and dark pools

04 August 2009  |  12635 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  |  8404 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.eudownload the paper now

Who is commenting?

Top topics

Most viewed Most shared
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9947 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9919 views comments | 8 tweets | 15 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
8264 views comments | 1 tweets | 3 linkedin
hands typing furiouslyCompliance: Overcome the data deficit
7723 views 0 | 1 tweets | 8 linkedin
PayPal buys Swift Financial to boost working capital bizPayPal buys Swift Financial to boost worki...
7659 views comments | 13 tweets | 7 linkedin