UBS settles SEC charges for $8 million

Monday, 19. July 2021 17:48

The Securities and Exchange Commission announced on Monday that the charges against UBS Financial Services were settled and that UBS agreed to cease and desist from the claimed violations and issue a prejudgment interest of $112,274 and a civil penalty of $8 million to victimized investors.

The lawsuit had accused UBS of failing to comply with the regulations in regards to the sales of a volatility-linked exchange-traded product (ETP). It also claimed that certain financial advisers had a flawed understanding of the appropriate use of the volatility-linked ETP.

"Advisory firms must protect clients from inappropriate investments in complex financial products. We will continue to scrutinize firms' policies and procedures related to these risky products, and we will take action when they are inadequate," said Daniel Michael, SEC official.

Related Links: UBS Group AG
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Breaking the News / LH