Former UBS Libor trader disputes FCA ban

Former UBS derivatives trader Arif Hussein and UK regulator FCA, will present cases to Upper Tribunal over decision to ban.

A former UBS Libor trader has disputed the Financial Conduct Authority’s (FCA) decision to ban him from any future role in financial services.

Arif Hussein has disputed the FCA’s decision and referred the matter to the Upper Tribunal where both will present their cases.

Hussein headed up UBS’s GBP desk in London and traded interest rate derivative products referenced by Libor benchmarks.

The FCA has banned Hussein for Libor manipulation between 28 January and 19 March 2009 “with the aim of benefitting UBS’s trading positions.”

In its findings, the FCA said Hussein was “not a fit and proper person.”

The regulator concluded Hussein had “engaged in 21 communications in which he informed UBS’s GBP Trader-Submitters of his preferences (or, occasionally, his lack of a preference) for GBP LIBOR rates.”

Hussein “acted recklessly and so lacks integrity”, the FCA said.

UBS was fined £160 million by the FCA in 2012 for its misconduct in respect of Libor manipulation, which had been occurring for over six years.

The FCA said UBS had not observed proper standards of market conduct in its submissions, and had failed to organise its affairs responsibly with adequate risk management systems.

The tribunal will decide whether to ban Hussein as suggested or remit it to the FCA to reconsider.