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FSA in tribunal battle over £1.3m fine for ex-UBS dealer
by Daniel Grote on Dec 13, 2011 at 08:08
Former UBS dealer Sachin Karpe is fighting the Financial Services Authority's (FSA) plans to serve him with one of its biggest-ever individual fines for his role in alleged misuse of client money.
Karpe's case relates to the failures that led to UBS paying $42 million in compensation, and an £8 million FSA fine for not having tight enough controls.
Karpe's lawyer Michael Blair QC told a tribunal yesterday that the FSA is overreaching its powers to fine him, according to the Financial Times.
The FSA has accused Karpe of allocating money from client accounts to cover up losses made on other accounts from unauthorised trades in activity dating back to at least 2005, and is planning to fine him £1.3 million.
UBS said in a statement to the FT that it had supported the FSA's action and remediated any compliance failings.
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2 comments so far. Why not have your say?
Neil H Francis
Dec 13, 2011 at 09:50
That will be a FSA rebate for us sorted then.
report thisEden W
Dec 13, 2011 at 12:03
Interesting one this - if Mr Karpe made a load of money for himself by doing illegal things, then surely he should lose that money and be fined as well for the law-breaking. I have no idea therefore if £1.3m is proportionate but it jolly well should be. Anyone fancy talking to Fred the Shred.......ah but corporate incompetence is legal........you don't even get banned from company directorship (so, even if £328k pa pension isn't enough, you can go and earn more)
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