Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

UBS Settles Case Over Unregistered Assistants

Aug. 26 (Bloomberg) -- UBS AG, Switzerland’s largest bank, will pay $4.58 million to settle an investigation by regulators into whether its sales assistants were licensed in states where they did business.

UBS’s “client service associates” took orders without having the required state registrations, according to a statement today by the New Jersey Bureau of Securities, which said it led the case. The Zurich-based bank didn’t admit or deny the allegations.

“Over a six-year period, UBS failed to recognize a flaw in its order entry systems that allowed unregistered persons to accept customer orders,” Abbe R. Tiger, the New Jersey agency’s chief, said in the statement.

UBS’s sales assistants also weren’t adequately supervised, New Jersey regulators said. Bank of America Corp.’s Merrill Lynch brokerage settled a similar state investigation in 2009.

“UBS is pleased to have resolved this legacy registration issue which involved unsolicited orders,” Gregg Rosenberg, a UBS spokesman, said in an e-mailed statement.

To contact the reporter on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editors responsible for this story: Christine Harper at charper@bloomberg.net; David Scheer at dscheer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.