Kleinwort fined pounds 30,000 by SFA

Kleinwort Benson Securities has been reprimanded, fined pounds 30,000 and ordered to pay pounds 7,900 in costs to the Securities and Futures Authority (SFA), the City regulator, after admitting to failures in its internal controls.

Alistair Truelove and Philip Steel, two former registered representatives of the firm, were disciplined for mismarking positions which resulted in Kleinwort showing a paper loss of approximately pounds 500,000.

And, in two unconnected cases, one current employee and one former employee of Merrill Lynch International Bank, the private banking operation of the US bank, have been fined and reprimanded by the SFA.

In Kleinwort's case, Mr Truelove, a manager and trader in European convertible notes, was reprimanded, fined pounds 7,500 and required to pay pounds 3,000 towards the SFA's costs.

Mr Steel, who worked as Mr Truelove's assistant, was reprimanded and required to pay pounds 2,000 towards costs. He was not fined because the SFA said it had taken into account that at the time he was only in his mid- 20s, had been working in the back office at Kleinwort and had no experience in trading convertible notes and warrants.

The SFA said Mr Truelove and Mr Steel adopted a practice of marking positions on the European convertibles and warrants book which was neither in accordance with the SFA's rules nor with Kleinwort's own mark to market policy between 1 July 1995 and the beginning of September 1995.

The consequent mismarking of positions concealed "substantial, though unrealised, losses" on Kleinwort's profit and loss account, the regulator said.

A spokesman for Kleinwort Benson said the firm had spotted the problem and reported it to the SFA.

In the actions taken against the Merrill Lynch staff, the SFA said Melville Ipe, who is still a registered representative of the bank, was fined pounds 7,500, reprimanded and required to pay pounds 7,500 towards the SFA's costs for selling a product to a customer which was unsuitable.

Tanvier Malik, a former registered representative, was fined pounds 15,000 and required to pay pounds 5,000 towards costs after providing incomplete valuation reports to a private customer.

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss