Ex-UBS junior with lifetime ban calls on FCA to end ‘scapegoating’

A junior trader banned for life by the Financial Conduct Authority over Libor-fixing claims said he was “scapegoated” by the regulator after judges slammed the authority’s handling of the case.

Arif Hussein, who worked for UBS, was handed a lifetime ban by the FCA in 2016 over claims he misled the authority’s investigation into Libor fiddling, although he didn’t personally manipulate rates.

Judges criticised the watchdog’s handling of the case and questioned why it pursued a relatively junior trader when there was widespread manipulation at UBS overseen by senior managers, who faced no action.

Hussein, who says he’s spent hundreds of thousands fighting the ban, told the Standard: “I’ve always been arguing that I was scapegoated by the FCA, which could have gone after more senior managers but probably decided it was too difficult.

“They’re always looking at bankers to take responsibility for mistakes but when the regulator makes a mistake they tend to hide behind ruling and confidentiality.

“I hope the FCA take notice and make changes to the way they do thing and actually make an effort to go after the people who were the perpetrators of this. This whole thing was unnecessary. There were always bigger fish to go after.”

Though he has lost his bid to overturn the FCA’s decision, judges said the watchdog should reconsider the length of the ban.

Tom Hayes, the former UBS trader who is serving an 11-year prison sentence, said: “The investigating authorities have taken a deliberately blinkered view of Libor, protecting the banks and their management at all costs for what was bank-mandated behaviour and global market practice.”

UBS was fined £160 million in 2012 over its role in the Libor scandal.

UBS declined to comment. The FCA said it had considered all available evidence on Libor misconduct at UBS.