12 October 2009
Firm issued FSA fine over fraud
The Financial Services Authority (FSA) has issued a fine of £154,000 to London-based investment bank and stockbroker Seymour Pierce.
Its action was taken in response to a fraud committed by an employee of the firm.
Over a period of several years, the worker embezzled client funds.
Identified as Mr A, the individual siphoned money out of customers' accounts and it is understood that he will face separate legal action by the regulator.
Seymour Pierce reported the staff member to the FSA when it discovered accounting discrepancies after he was dismissed for unsatisfactory conduct on matters unrelated to the fraud.
The regulator ruled that weak compliance controls at the company had allowed Mr A to steal the money and therefore a punishment must be imposed.
Some of the funds he stole were recovered because Seymour Pierce was able to seize shares it managed for its staff once sufficient evidence was available.