The UK Financial Services Authority and Swiss Financial Market
Supervisory Authority have appointed Deloitte to investigate the
events that lead to rogue trader Kweku Adoboli losing $2bn in
unauthorised trading at the Swiss investment bank UBS, according to
the Financial Times.
In a joint statement, the regulators said ‘a
third party’ will investigate the details of the unauthorised
trading and the control failures which permitted the activity to
remain undetected.
The investigation will also assess the overall
strength of UBS’s controls to prevent unauthorised or fraudulent
trading activity in its investment bank.
On Friday at London magistrate court, Adoboli
was charged for false accounting and fraud, dating back to October
2008.
Adoboli worked for the investment bank’s Delta
One trading desk until his arrest in the early hours of Thursday
morning.
UBS’s board of directors set up a committee
that will conduct an independent internal investigation into the
unauthorised trading activities.
The committee will be chaired by the former
chief financial officer of JP Morgan David Sidwell, who will report
to the UBS board.
