FSA fines UBS £29.7m over Adoboli losses

The Financial Services Authority (FSA) has fined UBS AG (UBS) £29.7 million for failing to prevent large scale unauthorised trading which lost the bank over $2bn.

The FSA said in a statement that UBS' systems and controls had failed to prevent trader Kweku Adoboli racking up $2.3bn of losses. UBS' fine - which had been expected to climb as high as £50m - was reduced from £42.4m because it opted to settle early. It comes after Adoboli himself was sentenced to seven years in jail for his actions. He was accused of carrying on unauthorised trades in excess of authorised risk limits, concealing his exposure via fictitious hedges and hiding some of his profits so he could funnel them back into official accounts. Despite arguing he could not ha...