The Financial Services Authority has banned and fined a portfolio manager at BlueCrest Capital, a highly regarded European hedge fund, in an unprecedented move presaging a tougher period in UK regulation.

The FSA said Loic Albert Antoine Montserret, who was responsible for managing $60m (€45.3m) of capital in the BlueCrest Multi Strategy Credit Fund, mismarked trading positions to hide losses in an attempt to avoid losing his job.