Kleinwort fined pounds 30,000 by SFA
Friday 10 January 1997
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.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Japanese island overrun with cats after population explodes
London property boom built on dirty money
Becky Watts: Stepbrother and his girlfriend named locally as two arrested on suspicion of murder
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...