FSA faces tribunal battle over £1.3m fine for ex-UBS dealer

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.