FSA begins enforcement action over UBS rogue trades

The FSA has begun a formal enforcement investigation into the rogue trade losses revealed by UBS last September.

The regulator said it has begun the action following an independent investigation into the events surrounding the $2.3bn trading loss sustained last year.

Earlier this week former UBS trader Kweku Adoboli pleaded not guilty to charges relating to the losses.

UBS blames Adoboli for the losses, first revealed on 15 September 2011. The FSA added it is in close contact with Swiss regulator FINMA, which has begun its own enforcement action against UBS following the joint independent investigation.

“FINMA will assess and rule upon the adequacy of the controls that were in place to prevent and detect unauthorised trading within the investment bank and their compliance with the Banking Act and the Stock Exchanges and Securities Trading Act and related regulations,” the regulator said in a statement.

“FINMA does not expect to publish further information before the outcome of the enforcement proceedings.”