Swiss and British regulators have stepped up their investigation into $2.3 billion (SFr2.1 billion) in rogue trading losses at UBS with the launch of a formal probe.
The Swiss Financial Market Supervisory Authority (Finma) said on Friday it had started formal administrative enforcement proceedings against UBS under Swiss law, as well as launching a deeper investigation alongside Britain’s Financial Services Authority.
UBS unveiled the trading losses on September 15, blaming it on a rogue trader. A day later regulators began initial investigations into the events surrounding the losses at UBS’s investment bank in London.
Finma said it would be reviewing the controls in place at UBS to prevent and detect unauthorised trading and its compliance with banking and stock exchange and securities trading law.
UBS said it would cooperate fully with its regulators and was making internal changes in response to the losses.
A former UBS trader pleaded not guilty earlier this week to charges related to the losses. He will remain in custody until a trial date set for September.
The enforcement investigations could also take several months.