The Financial Conduct Authority (FCA) has secured a ban against a former derivatives trader on the grounds that he had lied when giving evidence during an FCA investigation into market abuse and at tribunal.
Following the Upper Tribunal's decision, David Hobbs is now prevented from performing any role in regulated financial services.
Hobbs, who was a proprietary trader at Mizuho International, was originally given a financial penalty of £175,000 and the imposition of a prohibition order in 2010 following an FCA investigation into market abuse concerning his instructions to a broker over buying coffee futures in 2007.
Hobbs then appealed against this decision to a tribunal, which found that while he had lied to the tribunal and the FCA, he had not committed market abuse. As a result, in 2012 the tribunal directed the FCA to take no action against the trader, although the broker in the case was banned and fined £100,000.
The FCA then appealed against the tribunal's determination regarding Hobbs' fitness and propriety, but not its finding on the original issue of market abuse, by taking a case to the Court of Appeal.
The Court of Appeal ruled that the tribunal should consider whether the fact Hobbs had been found to be telling lies meant he was not a fit and proper person, even if he was not guilty of market abuse.
As a result of this ruling, the matter went back before a tribunal which has now decided that as a result of putting forward a false defence to the FCA during the course of its investigation, and in maintaining that defence in evidence before the earlier tribunal, Hobbs had exhibited a lack of integrity such that he is not a fit and proper person.
Tracey McDermott, FCA director of enforcement and financial crime, said: 'Hobbs failed to demonstrate the standards of behaviour that we expect of those who hold the privileged position of approved person and failed in his basic responsibility to act with integrity: if you cannot tell the truth there is no place for you in the financial services industry.'
