City watchdog bans rogue trader who lost LCS £2.7m

A former inter-dealer broker at Lewis Charles Securities (LCS) has been banned from working in the City by the Financial Services Authority, who declared he was not a "fit and proper person" for any regulated work.

The City watchdog said it had also referred the broker, Jonathan Bunn, to the City of London Police for investigation into suspected criminal offences. The FSA said that Mr Bunn had concealed a short position in HSBC shares last summer which eventually lost LCS almost £2.7m. As he was only authorised to trade on a "matched" basis, he hid his position by creating fraudulent deal-slips to circumvent the firm's controls, the FSA added.