UBS Financial Services agrees to pay $4.58 million in multi-state settlement

By Bryan Cohen | Aug 26, 2013

NEWARK, N.J. (Legal Newsline) - New Jersey Acting Attorney General John Hoffman announced Monday that New Jersey will receive $98,184.84 in civil penalties as part of a multi-state settlement with UBS Financial Services.

Over a six-year period, UBS allegedly employed client services associates who accepted orders from clients without being registered with the New Jersey Bureau of Securities. UBS also allegedly failed to provide adequate supervision to the client services associates who took client orders.

"The conduct our bureau investigators uncovered violated the state's Uniform Securities Act, our primary law for protecting investors and their hard-earned money," Hoffman said. "These violations exposed investors to unnecessary risk and such conduct will not be tolerated, nor go unpunished."

As part of a multi-state settlement coordinated by the North American Securities Administrators Association and led by the New Jersey Bureau of Securities, UBS agreed to pay up to $4.58 million in civil penalties to all 50 states, the U.S. Virgin Islands, Puerto Rico and the District of Columbia. UBS also agreed to revise its client transaction processes and supervisory procedures to correct the alleged violations.

UBS did not admit or deny the findings of fact and conclusion of law as part of the agreement.

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