Swiss Regulator Sends Warning Letters to Individua
Post# of 4611
Posted On: 11/12/2014 9:13:38 AM
Swiss Regulator Sends Warning Letters to Individuals in Currencies Probe
Roughly 10 Past, Present UBS Employees Get Letters
By David Enrich and John Letzing
Nov. 11, 2014 12:23 p.m. ET
http://online.wsj.com/articles/swiss-regulato...1415726632
LONDON-Switzerland’s financial markets regulator warned several past and present UBS AG employees Tuesday that they face potential enforcement actions for their alleged roles in misconduct in the foreign-exchange markets, according to people familiar with the matter.
The warning letters from the regulator, known as Finma, were sent to approximately 10 past and present UBS employees, these people said. The letters say the recipients are suspected of misconduct and give them the chance to respond to the warnings and defend themselves.
The letters were sent a day before regulators in the U.K., U.S. and Switzerland are expected to enter into a landmark settlement with up to seven banks to resolve a roughly 18-month investigation into alleged improprieties in the vast currencies market.
Six banks, including UBS, are likely to pay a total of well over £1.2 billion ($1.9 billion) to resolve the investigation by the U.K.’s Financial Conduct Authority. The banks are likely to face penalties from U.S. authorities as well. The U.K. settlement is expected to be announced around 6 a.m. London time Wednesday.
But Wednesday’s action isn’t likely to include any penalties against individuals, according to people familiar with the settlement talks. The U.K.’s settlement documents with individual banks aren’t likely to name or otherwise identify individuals, one person said.
Finma’s warning letters are one of the clearest signs yet that individuals remain under scrutiny. The U.S. Justice Department and the U.K.’s Serious Fraud Office also are conducting criminal investigations that aren’t likely to yield results until next year.
UBS has played a central role in the foreign-exchange investigation, according to people familiar with the matter. The Zurich-based bank has suspended at least seven traders from its offices in cities including Zurich and New York, people familiar with the matter have said. In at least one case, a rival bank has suspended a senior trader due to his alleged conduct when he previously worked at UBS, people familiar with the matter have said.
UBS has said it is cooperating with authorities and that it has taken disciplinary action against employees in connection with the probe.
It wasn’t clear which individuals received the Finma warning letters. It also isn’t clear what potential penalties the individuals potentially could face.
—Chiara Albanese contributed to this article.
Write to David Enrich at david.enrich@wsj.com and John Letzing at john.letzing@wsj.com
http://online.wsj.com/articles/swiss-regulato...1415726632
Roughly 10 Past, Present UBS Employees Get Letters
By David Enrich and John Letzing
Nov. 11, 2014 12:23 p.m. ET
http://online.wsj.com/articles/swiss-regulato...1415726632
LONDON-Switzerland’s financial markets regulator warned several past and present UBS AG employees Tuesday that they face potential enforcement actions for their alleged roles in misconduct in the foreign-exchange markets, according to people familiar with the matter.
The warning letters from the regulator, known as Finma, were sent to approximately 10 past and present UBS employees, these people said. The letters say the recipients are suspected of misconduct and give them the chance to respond to the warnings and defend themselves.
The letters were sent a day before regulators in the U.K., U.S. and Switzerland are expected to enter into a landmark settlement with up to seven banks to resolve a roughly 18-month investigation into alleged improprieties in the vast currencies market.
Six banks, including UBS, are likely to pay a total of well over £1.2 billion ($1.9 billion) to resolve the investigation by the U.K.’s Financial Conduct Authority. The banks are likely to face penalties from U.S. authorities as well. The U.K. settlement is expected to be announced around 6 a.m. London time Wednesday.
But Wednesday’s action isn’t likely to include any penalties against individuals, according to people familiar with the settlement talks. The U.K.’s settlement documents with individual banks aren’t likely to name or otherwise identify individuals, one person said.
Finma’s warning letters are one of the clearest signs yet that individuals remain under scrutiny. The U.S. Justice Department and the U.K.’s Serious Fraud Office also are conducting criminal investigations that aren’t likely to yield results until next year.
UBS has played a central role in the foreign-exchange investigation, according to people familiar with the matter. The Zurich-based bank has suspended at least seven traders from its offices in cities including Zurich and New York, people familiar with the matter have said. In at least one case, a rival bank has suspended a senior trader due to his alleged conduct when he previously worked at UBS, people familiar with the matter have said.
UBS has said it is cooperating with authorities and that it has taken disciplinary action against employees in connection with the probe.
It wasn’t clear which individuals received the Finma warning letters. It also isn’t clear what potential penalties the individuals potentially could face.
—Chiara Albanese contributed to this article.
Write to David Enrich at david.enrich@wsj.com and John Letzing at john.letzing@wsj.com
http://online.wsj.com/articles/swiss-regulato...1415726632
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