FSA Seeks to Ban Hedge Fund Trader for Life

WEST PALM BEACH, FL (HEDGECO.NET) – Philippe Jabre is appealing to the Financial Services and Markets Tribunal to challenge The Financial Services Authority and its right to call for a ban from trading in the City and a £750,000 fine for alleged market abuse.

The fine was the heaviest ever put on an individual by the FSA, refering to Mr Jabre’s trading in the Japanese company Sumitomo Mitsui Financial Group three years ago. He took a series of positions in the shares shortly after allegedly being made privy to inside information about Sumitomo by a salesman at Goldman Sachs, the investment bank.

Mr Jabre’s lawyer submitted that because the trades took place on the Tokyo, rather than London, stock exchange, the FSA had no powers to punish his client.

In its submission, the FSA called on the three-man tribunal, led by Stephen Oliver QC, to conclude “that Mr Jabre is not a fit and proper person to perform functions in relation to a regulated activity”.

Last month, the FSA’s chief disciplinarian, Tim Herrington, issued a stark warning to financial fraudsters and rule breakers that he would not be afraid to “remove the livelihoods” of anyone who threatened the stability of financial markets.

Mr Jabre has set up a new hedge fund to manage his sizeable personal wealth, estimated to be about £200m.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]

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