The Financial Services Authority (FSA) has fined an ex-client adviser at UBS £150,000 for using a pre-existing structure to enable an Indian resident customer to invest in a fund that breached Indian law.
In a statement issued today (December 16th), the regulator explained that Jaspreet Singh Ahuja had also acted against UBS guidelines as he misled the bank’s legal and compliance department.
Under the Foreign Institutional Investor vehicle and Indian law, Indian investors cannot place funds into Indian securities except in particular instances, which is a tactic employed to allow non-Indian investors to put money into Indian securities.
Acting director of enforcement and financial crime for the FSA Tracey McDermott described Ahuja’s failings as “significant”.
She said: “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.”
Ahuja was also banned from the sector.
Management consultant Rupinder Sidhu was sentenced to two-years imprisonment yesterday after he was found guilty of 22 counts of insider dealing at Southwark Crown Court.
Posted by James Harrison