According to the Wall Street Journal, UBS recently settled allegations client service associates, who provided sales support to UBS’s brokers and financial advisers, were accepting custumer trade orders from clients. UBS agreed to pay $4.6 million to be shared among the 50 states, the District of Columbia, Puerto Rico and the U.S Virgin Islands. In addition, UBS allegedly failed to properly supervise their employees by not having a system in place to verify employees registration status.
According to Brokercheck report the New Jersey Bureau of Securities lead the the multi-state investigation with the North American Securities Administrators Association (NASAA). The report indicates that UBS “Fail[ed] to establish an adequate system to monitor the registration status of persons accepting client orders.” This enabled the unregistered associates to take client orders without the necessary authorization. New Jersey will reportedly receive more than $98,000 from the settlement.
Securities law requires individuals to be registered with the appropriate regulators in order to sell or buy securities. Brokerage firms have a supervisory responsibility to monitor all the activities of their employees and ensure they are following securities laws and regulations. Brokerage firms that fail to properly supervise their employers can be held liable for investment losses.
To learn more about learn more about securities regulator actions involving UBS, visit our earlier post here.
The foregoing information, which is publicly available on the SEC website, is being provided by The White Law Group.
If you invested through UBS Financial Services and have suffered losses, The White Law Group may be able to help. To speak with a securities attorney about your litigation options, please call the firm’s Chicago office at 312-238-9650 for a free consultation.
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