The U.K. regulator has applied more pressure to UBS than previously known in the case of a former banker who was allegedly raped by her boss.
Last July, a former UBS banker in London wrote to investment bank head Andrea Orcel, leveling accusations against a higher-ranking banker who was her superior. She also criticized the Swiss bank's handling of her case, which ended in her former boss' suspension and her eventually leaving the bank.
Since then, UBS has vowed to get to the bottom of the accusations, including by hiring Freshfields Bruckhaus Deringer as outside counsel. This may not have been entirely UBS' choice, according to a report in industry publication «Financial News» (behind paywall).
Outside Controllers
The magic circle law firm is to report its findings directly to the Financial Conduct Authority, which regulates UBS in the U.K. Freshfields' investigation will form the decision-making basis for the FCA on whether UBS and the banker being investigated criminally on the rape accusations are sanctioned.
«As we’ve already said, UBS has decided to conduct a review, as we regularly do after significant cases. The bank’s internal expert team will conduct this review. Additionally, UBS has appointed an external law firm, Freshfields, to provide an independent assessment from an outside party and draw from broader industry insights,» a spokeswoman for UBS said.
Murky Handling
The alleged rape, which took place in the autumn of 2017, came to the public knowledge after the victim sent an email to Orcel, saying she had been encouraged by how Credit Suisse had handled a harassment case. UBS itself has said that the case had left a deep impression on the bank and reiterated that it followed a zero tolerance policy towards sexual misconduct and harassment. Orcel vowed to do everything to prevent such cases from happening again.
The alleged victim has spoken out about UBS' handling. She claims the bank asked her friends whether she was a «one-night stand» type of person after she reported waking up in a stranger’s house next to her boss after a company drinks event. She didn’t recall how she had gotten there but believed, she had had non-consensual sex.
