UBS Financial Services fined for state securities violation

Dale Schaft, Information Management Officer, 802-828-4872
09/19/2013 (All day)

MONTPELIER – Commissioner Susan L. Donegan of the Vermont Department of Financial Regulation announced Thursday, Sept. 19, 2013, that Vermont will receive $63,630 from UBS Financial Services resulting from a multi-state investigation conducted by the North American Securities Administrators Association (NASAA). The investigation revealed that some UBS employees, who were not registered to sell securities, had been accepting orders.

UBS has agreed to require all client service associates obtain the necessary licenses and comply with state registration requirements. It has also enhanced its computerized order entry system to automatically validate that the person entering the order is properly registered to sell securities in the state where the client lives.

Donegan said she is pleased with the steps UBS has taken to correct erroneous practices.

“UBS has acknowledged the need to modify its procedures,” she said, “and I appreciate the efforts to implement corrective actions.”

All 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands will receive a portion of the approximately $4.6 million settlement.

UBS Financial Services employs more than 61,000 people and provides financial services worldwide including wealth management, investment banking and asset management.