WILMINGTON, Del. (Legal Newsline) - Delaware Attorney General Beau Biden announced a $70,077 settlement Monday with a brokerage firm that allegedly failed to make sure its agents were properly registered in Delaware and other states.
UBS Financial Services Inc., which functions as a broker-dealer in Delaware, allegedly allowed agents not registered in Delaware to accept orders from Delaware investors. The flaw in the UBS order entry system that caused the issue allegedly went unrecognized for six years.
"State law requires those who sell stocks and securities to Delaware investors to be registered with our Investor Protection Unit," Biden said. "We've acted to hold UBS accountable to Delaware's Securities Act and ensure UBS agents are registered with us as required so that we can continue to safeguard the investments, pensions, and retirement funds of Delawareans."
Under the terms of the multi-state settlement, UBS agreed to pay $4.58 million in civil penalties to the 50 states, Puerto Rico, the U.S. Virgin Islands and the District of Columbia. UBS will also revise its client transaction processes and supervisory procedures to prevent violations going forward.
The $70,077 payment to Biden's Investor Protection Fund will support securities fraud inquiries and initiatives meant to educate investors.
Delaware AG announces settlement with brokerage firm
