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
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent