Defendant Name: UBS Financial Services Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: UBS Group AG
SIC Code: 6021
CUSIP: H4209710

Initial Case Details

Legal Case Name In the Matter of UBS Financial Services Inc.
First Document Date 29-Jun-2022
Initial Filing Format Administrative Action
File Number 3-20912
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Sections 206(2), 206(4) Advisers Act; Rule 206(4)-7 Advisers Act

Resolutions

First Resolution Date 29-Jun-2022
Headline Total Penalty and Disgorgement $24,600,000

Related Documents:

34-95168 29-Jun-2022 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 15(b) of the Securities Exchange Act of 1934 and Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On June 29, 2022, the SEC instituted settled a cease-and-desist proceedings, stating: "UBS provided its financial advisors inadequate training or dedicated supervisory oversight in this complex options trading strategy during the Relevant Period, as a result certain of them did not understand the significant downside risk. ... UBS willfully violated Section 206(2) of the Advisers Act which makes it unlawful for any investment adviser, directly or indirectly, to 'engage in any transaction, practice or course of business which operates as a fraud or deceit upon any client or prospective client.'"
2022-117 29-Jun-2022 Press Release--Administrative Proceeding
UBS to Pay $25 Million to Settle SEC Fraud Charges Involving Complex Options Trading Strategy
The "announced that UBS Financial Services Inc. has agreed to pay approximately $25 million to settle fraud charges relating to a complex investment strategy referred to as YES, or Yield Enhancement Strategy."