The U.K.'s Financial Services Authority has fined a former executive from Toronto-Dominion Bank $1.2 million for intentionally mispricing trading positions in credit derivatives to cover his losses and banned him from working in the financial services industry.
Nabeel Naqui, former head of the European and Asia-Pacific credit products group at TD, tried to cover up his losses on trading credit default and other contracts, the securities watchdog said Dec. 16.
Naqui's fine is among the largest given by the FSA to individuals this year for market abuse, legal experts said.
The FSA last year fined TD $11 million for repeated system and control failures after it was forced to cut earnings by about $95.4 million in 2008 because of the mispriced derivatives.
"We cooperated fully with the FSA in its investigation and we think it is appropriate that Mr. Naqui is being held accountable," said Matthew Fortier, a TD spokesman in Toronto.
"Mr. Naqui's actions and behavior did not reflect the strong risk culture at TD Securities and we were deeply disappointed that our controls were circumvented."
