The FSA said Pottage failed to prevent unauthorized trades at the wealth management unit, carry out an adequate initial assessment of the business practices at the unit and monitor them consistently in a submission to the London court.

The regulator said if Pottage would have assessed the practices he would have identified serious flaws in the design and operational effectiveness of the unit’s governance and risk management frameworks.

Pottage’s lawyer Guy Philipps challenged the fine saying his client tried to improve the systems and controls in the unit when he took charge as CEO in September 2006 and does not deserve the fine.

FSA fined UBS in 2009, 8 million pounds for not preventing its international wealth management personnel from making 50 unauthorized trades a day with funds from 39 customer accounts, third largest penalty levied by the regular that time.

The fine is being challenged at a London hearing that started on November 14.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.