UK Regulator Drops London Whale Trader Case

Bruno Iksil will face no further action from the Financial Conduct Authority.

The UK’s financial regulator has dropped its investigation into the man at the centre of JP Morgan’s so-called London Whale $6.2 billion trading loss.

Bruno Iksil, who had been accused of various charges related to market misconduct, will face no further action in the UK, the Financial Conduct Authority (FCA) has said. US authorities dropped their case against the trader in 2013.

According to a letter from the FCA, which has been widely reported this morning, the investigation was stopped after a meeting of the authority’s Regulatory Decisions Committee. The committee is required by UK law to independently review the FCA’s enforcement actions.

Iksil had faced a fine of up to £1 million ($1.5 million) and an industry ban, according to sources named by Bloomberg.

A statement released on behalf of Iksil, reported by the Wall Street Journal, said he was considering his position and rights.

“He remains a cooperating witness in ongoing US criminal and civil proceedings and will make no further comment at this time so as not to prejudice those proceedings,” the statement said.

In May, the FCA lost its appeal against a decision that deemed it had made the London Whale’s boss “too identifiable” in its report on the 2012 scandal. Achilles Macris, formerly JP Morgan’s London-based international CIO, complained in 2013 that the FCA identified him in its highly critical assessment without providing him a copy of the fine notices or the chance to defend himself.

This week, JP Morgan declined to comment to media on the announcement about Iksil; the FCA confirmed to news agencies that it had dropped the investigation.

Related: Former JP Morgan CIO Refuses to Take Responsibility for Whale Losses; Pensions Allege JPMorgan Transformed CIO Unit into Risky Prop-Trading Desk

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