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 28-Sep-2016
Initial Filing Format Administrative Action
File Number 3-17587
Allegation Type Broker Dealer

Violations Alleged

Other
• Section 15(b)(4)(E) Exchange Act

Resolutions

First Resolution Date 28-Sep-2016
Headline Total Penalty and Disgorgement $15,025,882

Related Documents:

34-78958 28-Sep-2016 Administrative Proceeding
Order Instituting Administrative Proceedings Pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions
On September 28, 2016, the SEC issued a settled administrative proceeding against UBS Financial Services, Inc. According to the SEC: "During the period from 2011 through 2014 ('Relevant Period') UBS failed reasonably to supervise its personnel with a view toward preventing violations of the federal securities laws. UBS, through its Capital Markets Structured Solutions unit (the 'Structured Solutions Desk'), failed to develop and implement policies and procedures reasonably designed to educate and train UBS registered representatives in connection with the Structured Solutions Desk’s single stock-linked reverse convertible notes ('RCNs') business so that they could adequately understand the risks and rewards of the product such that the registered representatives could form a reasonable basis to make suitable recommendations to certain customers. Without adequate education and training, certain registered representatives made unsuitable recommendations in relation to the offer and sale of these RCNs to certain customers in light of their investment profiles."
2016-197 28-Sep-2016 Press Release--Administrative Proceeding
SEC Charges UBS With Supervisory Failures in Sale of Complex Products to Retail Investors
On September 28, 2016, the SEC announced that: "UBS Financial Services has agreed to pay more than $15 million to settle charges that ii failed to adequately educate and train its sales force about critical aspects of certain complex financial products it sold to retail investors."