A former Deutsche Bank foreign exchange trader has been permanently banned from the financial services industry after he made false trades that inflated the bank's revenue by 28 million euros.
Andrew Donaldson, from Sydney, made a significant number of false entries into Deutsche Bank's records to temporarily offset his trading losses and artificially increase his reported trading profits in 2013 and 2014, an investigation by the Australian Securities and Investments Commission found.
The false entries related to trades that were never actually made, so no external parties were affected, but they significantly inflated Deutsche Bank's internal Australian Management Accounting revenue.
ASIC found Mr Donaldson's conduct was extremely serious and had contravened financial services law, and that the watchdog had reason to believe he was not of good fame and character.
Mr Donaldson worked in Deutsche Bank's Global Foreign Exchange Business between March 2012 and August 2014, and his conduct was detected and reported to ASIC by Deutsche Bank.
ASIC Commissioner Cathie Armour said the watchdog will take steps to remove anyone who engages in conduct that undermines the integrity of the financial services industry.
"This action is also a reminder to financial institutions to ensure that they have the right systems, people and processes in place to monitor trading conduct and detect and address trading discrepancies in a timely manner," she said.
