LONDON, Sept. 23 (Thomson Reuters Accelus) – UBS’s loss of $2.3 billion has hit the headlines worldwide, and while full details of what went wrong are unlikely to be public in the near future there are already compliance lessons for other firms. UK and Swiss regulators have launched an investigation into:
the details of the unauthorised trading activity;
the control failures which permitted the activity to remain undetected; and
the overall strength of UBS’ controls to prevent unauthorised or fraudulent trading activity in its investment bank.
Although the investigation is ongoing, and the regulators have expressly stated that they do not, as yet, have an expected timescale, there are a number of lessons or steps for other firms to consider. (more…)