UBS Financial Services has agreed to pay over $15m in fine to the US Securities and Exchange Commission (SEC) to settle charges that the bank failed to adequately train its sales force about critical aspects of certain complex financial products it sold to retail investors.
The case revolves around the sales of approximately $548m of reverse convertible notes between 2011 and 2014 to 8,743 retail customers, who were relatively inexperienced and unsophisticated.
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The regulator in its order said UBS failed reasonably to supervise its registered representatives within SEC regulations.
Andrew Ceresney, director of the SEC Enforcement Division, said: “We found that UBS dropped the ball by allowing the sales of complex financial products to retail investors without adequately training its sales force.”
UBS agreed to the SEC order without admitting or denying the findings. The settlement includes a civil penalty of $6m and disgorgement of $8.2m.
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