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FSA fines bank for failings in reporting

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21st Nov 2005
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The Financial Services Authority (FSA) has fined a private banking arm of the Swiss bank UBS £100,000 for failings in its reporting of financial trades.

UBS became the first firm to agree a settlement with the FSA under new procedures introduced after the Enforcement Process Review, which aim to speed up the process.

In July 2005 UBS Wealth Management (UBS WM) made a suspicious transaction report to the FSA. Firms are required to report suspicious transactions under the market abuse directive

A review of the report revealed that the transaction ' a client purchase ' had been incorrectly reported as a client sale.

Subsequently, it was found that all UBS WM's equity transactions executed with outside brokers had been incorrectly reported since October 1999, with UBS WM denoted as principal when it was really the agent.

In addition, UBS WM had relied on another division of UBS to report the transactions between them and it was found that since May 1999 these were either not reported or reported incorrectly.

The FSA said it did not believe that UBS had been "deliberate or reckless" and was taking "full remedial steps" to improve its systems. UBS had co-operated fully with the inquiry.

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