The Financial Services Authority has urged banks to check their controls in
the wake of the Société Générale losses, and is understood to be planning new
measures to strengthen controls over derivatives traders.
Jérôme Kerviel, a Paris-based trader, was said to have been responsible for
huge derivatives trades at the French bank leading to a £3.7 billion loss.
The regulator is considering forcing bankks to have a clearer separation of
trading staff from the middle and back offices, which handle settlement and
Sunday Times reported.
Those who move from the back offices further forward may also require closer
monitoring, while backlogs of trading could also be more closely scrutinised
since they may provide cover for illegal trading.
It has also telephoned banks in the wake of the problems to urge them to
ensure controls are in place.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
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Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group