View more on these topics

Former UBS trader fighting £1.25m FSA fine

Former UBS trader Sachin Karpe is contesting a £1.25m fine from the FSA for engaging in alleged unauthorised trades.

A tribunal heard Karpe, the ex-head of the Asia II desk, had chaired a disciplinary hearing in 2007 of an employee who had engaged in unauthorised foreign-exchange trades. This, the FSA said, was a case of “breathtaking hypocrisy”.

Along with issuing Karpe the £1.25m fine, which is one of FSA’s biggest individual fines, the FSA wants to ban him from working in regulated financial services.

Karpe’s barrister, Michael Blair QC, said the fine would bankrupt Karpe. He is not contesting the ban.

The FSA argues Karpe misused client money by allocating money from client accounts to cover up losses in other accounts on the back of unauthorised trades, which lead to UBS having to pay $42m in compensation to customers and pay an £8m fine to the regulator in 2009.

In a related hearing at the tribunal, John Pottage, who was chief executive and Karpe’s boss, is challenging the FSA in its attempt to fine him £100,000 for not properly monitoring his team, which included Karpe.

UBS said in a statement to the Financial Times it is supporting Pottage, who is still employed by the bank, but not Karpe, who left the business when the matters first came to light.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm