FSA fines former-UBS adviser
From Regulation Dec 16 2011 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
The FSA has banned and fined a former client adviser at UBS £150,000 for breaching Principle 1 of its code of conduct and failing to act with integrity.
Jaspreet Singh Ahuja who worked within UBS's London wealth management business is now prohibited from performing any function in relation to any regulated activity in the financial services industry.
During the period between 1 January 2006 and 30 January 2008 Ahuja used a pre-existing investment structure to enable an Indian resident customer via an investment fund incorporated in Mauritius to breach Indian law in clear contravention of UBS guidelines.
Ultimately, the customer invested over $250m in the fund and under Indian law an investor is not permitted to invest in Indian securities through a vehicle known as a "Foreign Institutional Investor" except in particular circumstances.
These vehicles are designed for non-Indian investors to make investments in Indian securities.
Following his wrong-doing Ahuja then took steps to conceal the true nature of the customer's investment by giving false and misleading information to the UBS compliance department, among others.
Finally Ahuja assisted in making unauthorised redemption payments out of the fund knowing the redemptions were not properly authorised by the customer.
Tracey McDermott, acting director of enforcement and financial crime, said: "Ahuja's failings were significant. He exploited his position of trust and repeatedly lied to his compliance department while helping a customer circumvent Indian law.
"This sort of behaviour has no place in the financial services industry. The substantial fine and the ban from working in the financial services industry are significant penalties and should serve as a reminder that such behaviour is woefully short of that expected of approved persons and will not be tolerated."