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An Australian investment bank has been fined £13 million by the financial watchdog after one of its London workers recorded hundreds of fake trades to hide their losses.
The Financial Conduct Authority (FCA) said Macquarie failed to detect more than 400 fictitious transactions made by Travis Klein, who worked on the metals and bulk trading desk at its branch in the capital, between June 2020 and February 2022. due to “significant weaknesses.” in its systems and controls.
The FCA said Klein overlooked “three key internal controls without detection for more than 20 months”, including a daily profit and loss reporting process.
It estimated the fake trades cost Macquarie around £45.8m to undo after they were discovered in 2022, but this did not affect its clients or the wider market.
Fine: The FCA said Macquarie failed to detect more than 400 fictitious trades made by Travis Klein, who worked at its city branch between June 2020 and February 2022.
Klein, who resigned the day his activities were discovered, has been banned from the financial services industry, the FCA said.
Macquarie said it took the matter “very seriously”.
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