SEC fines UBS $10m over alleged adviser 'misdirection' of investments

Mark Battersby
clock • 2 min read

The US Securities and Exchange Commission today (20 July) fined UBS Financial Services Inc more than $10m over charges that its financial advisers misdirected certain exchange-traded products to retail investors. According to the SEC's order, over a four-year period, UBS improperly allocated bonds intended for retail customers to parties known in the industry as "flippers," who then immediately resold or "flipped" the bonds to other broker-dealers at a profit. The order found that UBS registered representatives knew or should have known that flippers were not eligible for retail prior...

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