REFILE-UK watchdog fines and bans former UBS banker

(Refiles to corrects spelling of Margaret in final paragraph)

* FSA hands out 35,000 pound fine and five-year ban

* Fine could have been 100,000 pounds

* Fine cut due to cooperation and financial hardship (Adds detail, background)

LONDON, Nov 13 (Reuters) - A former UBS employee has been fined and banned for five years for his role in a trading scandal that saw British regulators slap an 8 million pound ($13.3 million) penalty on the Swiss bank last week.

Britain's Financial Services Authority said on Friday it had wanted to fine former UBS client advisor Andrew Cumming 100,000 pounds but cut the figure to 35,000 because of his cooperation and "serious financial hardship".

Cumming helped document false loans used to cover up losses racked up by a colleague through unauthorised trades using clients' money, the FSA said.

Four UBS dealers, all of whom have been fired, were involved in the unauthorised trades, the FSA said last week when imposing its third-biggest penalty ever on the bank.

"We are determined to deter behaviour of this kind by banning and fining anyone found to have committed such misconduct," FSA director of enforcement Margaret Cole. (Reporting by Myles Neligan; Editing by Dan Lalor) ($1 = 0.6017 pound)