Defendant Name:
UBS Financial Services Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
UBS Group AG
SIC Code:
6021
CUSIP:
H4209710
Document Reference:
34-95168
Document Details
Legal Case Name
In the Matter of UBS Financial Services Inc.
Document Name
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
Document Date
29-Jun-2022
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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.'"
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
The SEC stated that payment of disgorgement and pre-judgment amounts "shall be deemed satisfied by the payments previously made by UBS to investors in excess of that amount."
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$5,800,000.00
Shared:
Civil Penalty
Individual:
$17,400,000.00
Shared:
Pre-Judgment Interest
Individual:
$1,400,000.00
Shared:
Total Penalty
Individual:
$24,600,000.00
Shared:
