Defendant Name: UBS AG

Defendant Type: Public Company
SIC Code: 6021
CUSIP: H8923133

Initial Case Details

Legal Case Name In the Matter of UBS AG
First Document Date 13-Oct-2015
Initial Filing Format Administrative Action
File Number 3-16891
Allegation Type Securities Offering

Violations Alleged

Securities Act
• Sec 17(a)(2)

Resolutions

First Resolution Date 13-Oct-2015
Headline Total Penalty and Disgorgement $19,500,000

Related Documents:

33-9961 13-Oct-2015 Administrative Proceeding
Order Instituting Cease and Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Making Findings and Imposing Remedial Sanctions and a Cease and Desist Order
On October 13, 2015, the SEC instituted settled cease and desist proceedings against UBS AG. UBS offered and sold to 1,900 retail investors approximately $190 million of medium term notes linked to a proprietary foreign exchange trading strategy called the "V10 Currency Index with Volatility Cap ('V10' or Index)." The SEC alleged that: "UBS engaged in three types of conduct that were undisclosed to investors - taking unjustified markups, engaging in hedging trades with non-systematic spreads and trading in advance of certain hedging transactions - that negatively impacted or, in the case of trading before hedging transactions, had the potential to negatively impact, pricing inputs used to calculate the V10."
2015-238 13-Oct-2015 Press Release--Administrative Proceeding
UBS to Pay $19.5 Million Settlement Involving Notes Linked to Currency Index; Case is Agency's First Against an Issuer of Retail Structured Notes
On October 13, 2015, the SEC announced that, "UBS AG has agreed to pay $19.5 million to settle charges that it made false or misleading statements and omissions in offering materials provided to U.S. investors in structured notes linked to a proprietary foreign exchange trading strategy. The case is the agency's first involving misstatements and omissions by an issuer of structured notes, a complex financial product that typically consists of a debt security with a derivative tied to the performance of other securities, commodities, currencies, or proprietary indices."