The U.K. Financial Conduct Authority (FCA) has banned former a UBS AG trader who was sent to prison after hiding billions of dollars worth of trading losses, the regulator announced on Friday.
The U.K. watchdog has banned Kweku Adoboli from performing any regulated financial activity. “Mr. Adoboli abused his position as a senior trader of UBS AG,” the FCA says in a statement, noting that he caused US$2.25 billion in losses to the firm.
UBS was fined almost £30 million ($59.9 million) by the FCA for failing to prevent his unauthorized trading, and another trader was also banned for failing to report Adoboli’s activity.
Adoboli was convicted in 2012 of two counts of fraud by abuse of position, and he was sentenced to seven years’ in prison. His fraud conviction demonstrates “a clear and serious lack of honesty and integrity,” the FCA says.
“In reaching its decision, the FCA has considered all the relevant circumstances and the severity of the risk posed by Mr. Adoboli to consumers and financial institutions, and to confidence in the market generally,” the regulator says.