The UK Financial Services Authority (FSA) has
handed down its final notice to two former UBS employees found
guilty of conducting a series of unauthorised trades on customer
accounts between 2006 and 2007.

Sachin Karpe and Laila Karan will have to pay
£1.25m ($1.95m) and £75,000 respectively and have been banned from
performing any regulated financial services role.

The final notice comes after their attempt to
overturn the FSA’s initial ruling was dismissed by the UK’s Upper
Tribunal in May.

Karpe, the former head of the Asia II desk,
and Karan, a former client adviser on the same desk, worked at
UBS’s wealth management international business in London.

The pair made unauthorised transfers and loans
between client accounts concealing losses which resulted in
substantial losses for 21 customers.

Karpe led the misconduct while Karan, his
subordinate, helped him facilitate the trades.

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UBS has paid $42m compensation to its affected
customers. In November 2009, the FSA fined UBS £8m for “management
failures” in connection with Karpe and Karan’s misconduct.