Investment bank UBS AG has been hit with an £8 million fine by the Financial Services Authority (FSA).
According to the FSA, the bank failed to put in place adequate controls and systems to prevent four employees from trading currencies and precious metals using customers' money.
At the peak of their activities the group were conducting as many as 50 unauthorised transactions a day.
The trades, which occurred between January 2006 and December 2007, only came to light after a whistleblower raised concerns internally.
Margaret Cole, FSA director of enforcement and financial crime, said: "It is imperative, particularly in these more challenging financial conditions, that firms have suitable systems and controls in place to keep their houses in order. Where firms fall short in this regard, the consequences will be severe."
UBS faced a potential fine of £10 million, but the figure was cut by 20 per cent because it agreed to settle the matter at an early stage.
Last month, investment bank Seymour Pierce was fined £154,000 by the FSA for failing to establish effective controls to prevent employee fraud.
Show me Internal Audit jobs.
