Fabio Massimo De Biase has received a ban from working within the financial services industry after he was discovered to have paid kickbacks to a hedge fund trader in return for receiving brokering business.
Between January 2008 and September 2009, the ex-broker paid Anjam Ahmad Â£131,000 in the form of kickbacks, the industry regulator explained.
On a number of occasions, the pair also agreed to charge enhanced commission to AKO Capital, Mr Ahmedâs firm, which they subsequently divided between themselves.
Margaret Cole, managing director of enforcement and financial crime, said: âDe Biase exploited the trust of his employer and his client. This sort of behaviour has no place in the financial services industry.
âThis substantial fine and the ban from working in the financial services industry are significant penalties and should serve as a reminder that such behaviour is woefully short of that expected of approved persons and will not be tolerated."
The trader was liable for a fine of Â£500,000 as well as the Â£198,000 worth of commission Mr De Biase made through the arrangement.
However, due to the âserious financial hardshipâ this would cause, the final fine imposed was reduced.
By Jim Ottewill