Upper Tribunal Upholds FSA Decision to Ban and Fine Former UBS Advisers

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The Upper Tribunal (Tax and Chancery Chamber) has upheld an FSA decision to ban and fine two former UBS advisers in relation to an unauthorised trading scheme. The FSA were directed to fine Sachin Karpe £1.25 million and Laila Karan £75,000 and ban them for performing any role in regulated financial services for failing to act with integrity, in breach of Principle 1 of the FSA’s Statements of Principles and Code of Conduct for Approved Persons and for not being fit and proper persons as they lacked honesty and integrity.

Mr. Karpe was Desk Head of the Asia II Desk at UBS AG’s international wealth management business in London. He had carried out substantial authorised trading and made unauthorised transfers and loans between client accounts to conceal the losses. Mr. Karpe was Ms. Karan’s line manager. She assisted him in concealing the unauthorised activity and prepared false attendance notes. UBS paid compensation of over US $42 million to 21 customers who has suffered substantial losses as a result of the scheme. Decision for Mr. Karpe. Decision for Ms Karan.

 

Published In: Administrative Agency Updates, Business Torts Updates, Civil Remedies Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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