FSA bans and fines former UBS adviser £150,000 for not being fit and proper

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The Financial Services Authority (FSA) has today banned and fined Jaspreet Singh Ahuja, a former client adviser at UBS AG (UBS), £150,000 for failing to act with integrity, in breach of Principle 1 of its Statements of Principles and Code of Conduct for Approved Persons (“APER”) and for not being a fit and proper person. Ahuja is prohibited from performing any function in relation to any regulated activity in the financial services industry.

Ahuja was a client adviser within UBS’s international wealth management business in London. Between 1 January 2006 and 30 January 2008 he used a pre-existing investment structure to enable an Indian resident customer (via an investment fund incorporated in Mauritius, the fund) to breach Indian law in clear contravention of UBS guidelines. Ultimately, the customer invested over US$250 million in the Fund.

Under Indian law, an Indian investor (whether resident or non-resident in India) is not permitted to invest in Indian securities through a vehicle known as a “Foreign Institutional Investor” (FII) except in particular circumstances (which are not relevant here). Such vehicles are designed so that non-Indian investors may make investments in Indian securities.

Ahuja then wrongfully took steps to conceal the true nature of the customer’s investment, mainly by the deliberate and repeated provision of false and/or misleading information to the UBS Legal and Compliance department and other parts of UBS.

Detailed news link: here

Link to the final notice from FSA: here