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UBS To Settle US SEC Fraud Charges

By  |  June 29, 2022

Wealth manager and banking group UBS will pay $25 million to settle fraud charges relating to an options trading strategy, the US Securities and Exchange Commission (SEC) said on Wednesday.

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    UBS marketed and sold the “Yield Enhancement Strategy” to about 600 investors through its platform of domestic financial advisers from February 2016 through February 2017, the SEC said, adding its order found that UBS did not provide its financial advisers with adequate training and oversight in the strategy. Although UBS recognized and documented the possibility of significant risk in those investments, it failed to share this data with advisers or clients, the SEC said in a statement.

    “As a result, the order finds, some of UBS’s advisors did not understand the risks and were unable to form a reasonable belief that the advice they provided was in the best interest of their clients,” the statement added.

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