The Financial Conduct Authority has won its case to ban a former Mizuho derivatives trader from performing any role in financial services after being found guilty at a tribunal of lying to the regulator.

The Financial Conduct Authority has won its case to ban a former Mizuho derivatives trader from performing any role in financial services after being found guilty at a tribunal of lying to the regulator.

In 2010, the Financial Services Authority, the FCA's predecessor, fined David John Hobbs £175,000 (£284,000) and banned him from working in financial services in relation to market abuse for instructing Charles Kerr, a broker at Sucden, to buy coffee futures on the Euronext Life exchange in August 2007. 

Hobbs appealed to the FCA's Upper Tribunal, which found in November 2012 that he had not abused his market position, although he had lied to the tribunal and the FCA.

Given this finding, the tribunal directed the FCA to take no action against him.

Following the FCA's appeal of this decision earlier this year, the tribunal decided that even though Hobbs was not guilty of market abuse, his lying showed that he was not a fit and proper person.

The tribunal found that in putting forward a false defence to the FCA during its investigation and in maintaining it before the tribunal, Hobbs had demonstrated his a lack of integrity.

"Accordingly, he 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,” said Tracey McDermott, director of enforcement and financial crime at the FCA.