FSA censures third Morgan employee in three weeks

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Just days after the regulator attacked the firm's oil trader David Redmond for gambling an unauthorised $10 million (£6.3 million) after a long, boozy lunch, it today banned and fined trader Nilesh Shroff for deliberately ripping off customers.

Shroff was caught deliberately "pre-hedging" his customers' trades to benefit the bank.

Pre-hedging is where a trader takes an order from a customer but, using information provided by that customer, places a trade with the bank's money first. The practice means the bank makes the first profit when the price moves.

The FSA said: "Shroff did this on seven occasions: where customers ordered him to buy stocks, he bought them first for the firm, causing the price to increase before he executed the customers' trades. When the order came to sell stock, he first sold on behalf of the firm, decreasing the price."

Transcripts published by the FSA detail the moment when a client finally spotted what Shroff had been doing when his trades failed to move the stocks he had taken positions in saying: "This is an outrage!"

Shroff's fine of £200,000 was cut to £140,000 because he co-operated with the investigation.