Chris Prentice and Lisa Lambert
Washington (Reuters)-The Securities Division of UBS Group AG (SIX :) to settle costs incurred by U.S. securities regulators for volatility-linked exchange-traded fund sales-related non-compliance. Agreed to pay $ 8 million. Said on monday.
The US Securities and Exchange Commission (SEC) has charged UBS for two years starting January 2016, alleging that it did not restrict advisors from selling complex products that were not suitable for long-term holding.
The settlement is the sixth enforcement action initiated by a government initiative aimed at selling certain exchange-traded fund products to individual investors by investment advisers.
The SEC states that some financial advisers have a flawed understanding of the proper use of such products and have purchased the products for a long period of time resulting in “meaningful loss” and kept them in their accounts. Said.
A UBS spokesman who neither denied nor acknowledged the SEC’s allegations said the company was “happy to be able to resolve this issue.”
“As the SEC acknowledged, UBS actively reviewed the product and removed it from the program before being contacted by the SEC,” a spokeswoman said in an email.
UBS has agreed to pay an additional $ 112,274 interest. According to the SEC, civil penalties will be distributed to the affected investors.
“Advisory companies need to protect their clients from improper investments in complex financial instruments,” said Daniel Michael, Head of Complex Financial Instruments, SEC Enforcement.
“We will continue to scrutinize corporate policies and procedures related to these dangerous products,” he said.
Fusion media Alternatively, anyone involved in Fusion Media will not be liable for any loss or damage resulting from relying on the data, quotes, charts, trading signals and other information contained on this website. Please be fully informed about the risks and costs associated with trading in financial markets. This is one of the most risky forms of investment possible.
The UBS Securities and Exchange Commission will pay $ 8 million to resolve U.S. SEC claims, the SEC has told Reuters
https://www.investing.com/news/stock-market-news/us-settles-with-ubs-over-sales-of-exchangetraded-product-2561467 The UBS Securities and Exchange Commission will pay $ 8 million to resolve U.S. SEC claims, the SEC has told Reuters