Mexico’s National Banking and Securities Commission fined Hans Klingbeil, an equities trader at UBS AG (UBSN), 1.5 million pesos ($123,000) for using inside information to make stock recommendations to his clients.
The commission also fined Bank of Nova Scotia’s local unit 10 million pesos for nine violations, including failure to give clients proper information to make trading decisions, according to rulings posted on the agency’s website and dated Aug. 8.
The fines were the first issued by the commission since September, according to the website. The commission also fined Grupo Financiero Banorte SAB 48,670 pesos for failing to refuse a client’s request that violated securities laws and fined HSBC Holdings Plc (HSBA) 19,468 pesos for failing to notify the agency about changes in its board of directors. UBS wasn’t fined in Klingbeil’s case.
Carlos Lopez-Moctezuma, a spokesman for the commission, said yesterday that all the fines have been paid and there are no appeals pending for any of them.
Klingbeil, who works out of UBS’s offices in Stamford, Connecticut, after serving as head of the bank’s equity trading in Mexico City, didn’t return voice and e-mail messages seeking comment. Christiaan Brakman, a spokesman for Zurich-based UBS, declined to comment on the case, saying the bank wasn’t accused of any wrongdoing and that UBS “takes its regulatory responsibilities with the utmost seriousness.”
Humberto Castro, a spokesman for Bank of Nova Scotia (BNS) in Mexico City, didn’t return a message seeking comment on the fine. Press officials for Banorte and HSBC didn’t return voice and e-mail messages seeking comment.
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