The Monetary Authority of Singapore (MAS) has slapped a fine of S$11.2m ($8m) on Swiss private banking giant UBS for cheating wealthy clients.
The watchdog alleged that the Swiss bank’s client advisers overcharged its clients for transactions with derivatives and bonds between 2008 and 2017.
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MAS in its probe found that advisers did not comply with the spread or interbank price agreed with the client.
It was also revealed that advisers did not disclose or made only partial disclosures to customers when a limit order’s interbank prices improved or overcharged clients.
The probe was launched after UBS reported to MAS in 2016 that it discovered certain misconduct by its advisers in Hong Kong and Singapore.
MAS deputy managing director of financial supervision Ong Chong Tee said: “The conduct of UBS through its representatives is unacceptable and has no place in the financial services industry where trust and integrity are paramount.
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By GlobalData“Our enforcement action and penalty took into account that UBS has undertaken to compensate affected clients and that the bank rendered full cooperation to MAS during the investigation,” Tee added.
Admitting liability for the actions of its client advisers, the Swiss bank paid the fine. It also agreed to compensate all affected customers managed by its branch in Singapore.
The watchdog also mandated UBS to appoint an independent party to check the adequacy and effectiveness of its improved measures and share the finding with it.
It comes close on the heels of UBS being fined $51.1 by the Hong Kong Securities and Futures Commission (SFC) for overcharging clients.
