MF Global, the international brokerage, may be referred to the Financial Services Authority after admitting one of its former employees intentionally and repeatedly lied to a day trader who lost millions placing trades through the company.

The dramatic concession was made on Tuesday at the high court in a £30m ($44m) fraud lawsuit brought by Rajesh Gill, a prolific trader whose broker told him he was making vast profits even when he was shedding thousands of pounds a day.