The UK Securities and Futures Authority (SFA) has fined two senior members of Morgan Stanley and ordered them to pay costs exceeding £25,000.
Hugh Rance, former UK equities trader, was fined £25,000 and ordered to pay costs of £19,008. Bradley Bilgore, former head of UK equity trading was fined £15,000 and required to pay costs of £11,404.
The proceedings arose out of the execution of a client’s (a US investment advisor) order to purchase shares in a pharmaceutical company, despite the apparent impropriety of the client’s instructions.
Rance and Bilgore accepted that they failed to question the client’s instructions and raise the matter internally by consulting management or compliance as to the prudence of accepting the instructions.
The SFA concluded that Rance and Bilgore accepted they were in breach of Principle 2 of the Financial Services Authority’s Statements of Principle in that they failed to act with due skill, care and diligence.
By Janet Du Chenne
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.