Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a583900
FSA loses case against former UBS wealth boss
by Dylan Lobo on Apr 23, 2012 at 07:41
The FSA has lost its landmark bid to impose a £100,000 fine on former UBS Wealth Management UK head John Pottage for controls failure dating back to 2006.
The financial watchdog imposed the fine in 2009, claiming Pottage had failed to stop 'serious fraud' through unauthorised trading on the firm's wealth management desk. Pottage, who was appointed wealth head in 2006 and continues to be a senior executive at the firm, was accused of not putting suitable checks in place.
It was the first time the FSA had targeted an individual for failure to supervise rather than actual wrongdoing.
UBS did not believe the disciplinary action was justified and has supported Pottage throughout proceedings.
The Upper Tribunal unanimously agreed with UBS, saying Pottage had 'acted reasonably' and found the FSA decision was not supported by evidence.
'John Pottage and UBS take note of the decision of the Upper Tribunal. We are pleased with the outcome and that this matter is now closed,' the investment bank said in a brief statement.
UBS also said it had already acknowledged that there were weaknesses in certain aspects of WM UK's control environment, which had already been the subject of a Final Notice issued by the FSA to the Bank in November 2009.
'WM UK had already paid a significant financial penalty to the FSA in respect of those control weaknesses, which UBS had identified before the regulatory action was taken,' UBS said.
'All of the weaknesses had been remediated by June 2009, as was confirmed by an independent accountancy firm (before the Final Notice and financial penalty were issued/imposed).'
News sponsored by:
Today's top headlines
More about this:
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on Jun 19, 2013 at 09:33