As many as seven UBS traders may face sanctions from Switzerland’s financial watchdog in the coming weeks, potentially the first individuals to be punished in the global currency-rigging scandal, said two people with knowledge of the situation.
Bloomberg News reports that the Financial Market Supervisory Authority is planning to notify the traders of any penalties by the end of the year, said the people, who asked not to be identified because the probe is ongoing. The stiffest penalty Finma can impose against an individual is a five-year ban from the Swiss financial services industry.
The traders are among 11 current and former employees the regulator said it was investigating a year ago, on the same day it ordered the bank to give up $130m in profits, after UBS “severely violated” proper conduct in currency markets. Manipulation of foreign exchange and precious metals benchmarks is one of a series of scandals to hit the financial industry, with six banks, including UBS, fined a total $4.3bn in November 2014 by global authorities.
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