UBS will have to pay one of the largest fines yet imposed by the UK’s financial regulator for management failures that led to the Swiss bank’s $2.3 billion (€1.78 billion) rogue trading loss, according to people familiar with the negotiations.

The Financial Services Authority and UBS are finalising details on a settlement penalty that will probably range between £20 million and £50 million.

The two regulators announced a joint inquiry in September 2011, shortly after UBS announced that Kweku Adoboli had lost more than $2 billion on unauthorised trades. Adoboli was convicted of fraud this week and jailed for seven years by a London court.

– Copyright The Financial Times Limited 2012