UBS executive challenges FSA £100,000 fine, FT reports

15 November 2011

A senior executive at UBS is to challenge a £100,000 fine levied by the Financial Services Authority (FSA), a news report has revealed.

According to the Financial Times (FT), John Pottage, previous head of the bank’s wealth management business, is disputing allegations that he failed to put the appropriate checks in place when he became a desk head in 2006.

The fine was levied in connection to “a number of systems and controls failures”, which led to UBS receiving an £8 million penalty from the FSA back in 2009.

Mr Pottage led the wealth management unit at the time of the fraud, which saw four employees at UBS being sacked.

Guy Philips, the executive’s barrister, told the news provider: “A number of control failures occurred in the back office of the business. Mr Pottage is not said to have been in any way responsible for those control failures and he took prompt and effective steps, as his regulatory obligations required him to do, to ensure that each of them was properly investigated and rectified.”

The FSA argued that the executive should have acted sooner to investigate and test the effectiveness of the bank’s controls.

UBS recently announced a loss of $2.3 billion following the unauthorised trading actions of London-based trader Kweku Adoboli.

By Jim Ottewill

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