Company Overview of UBS Financial Services Incorporated of Puerto Rico
UBS Financial Services Incorporated of Puerto Rico is a financial services firm that offers underwriting services. The firm is based in San Juan, Puerto Rico. UBS Financial Services Incorporated of Puerto Rico operates as a subsidiary of UBS Financial Services Inc.
250 Munoz Rivera Avenue - Penthouse
San Juan, PR 00918
Founded in 1978
Key Executives for UBS Financial Services Incorporated of Puerto Rico
Compensation as of Fiscal Year 2017.
UBS Financial Services Incorporated of Puerto Rico Key Developments
Klayman & Toskes, P.A. Files Claim Against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc
Jan 13 17
The Securities Arbitration Law Firm of Klayman & Toskes, P.A. announced that they filed a claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services Inc. for $8.5 million. The Claimant entrusted assets to UBS with the investment objective of capital preservation. However, UBS ultimately concentrated the account in Puerto Rico Government Bonds and its proprietary Puerto Rico closed-end bond funds, which are leveraged and concentrated in PRGBs. UBS purchased and held for Claimant PRGBs and UBS PR CEBFs, both of which are closely tied to the performance of Puerto Rico’s economy. The Claimant believed the purchases were consistent with their low risk tolerance. However, the over concentration in these PRGBs and UBS PR CEBFs was fraught with excessive risk given the Claimant’s investment objective and risk tolerance. UBS failed to disclose to Claimant the risks associated with over concentrating the account in these securities. Had this information and the true nature of the risk of the recommended allocation been known to Claimant or properly disclosed, he would not have invested his assets in these products.
FINRA Sanctions UBS Puerto Rico $18.5 Million for Supervisory Failures Regarding Sales of Puerto Rican Closed-End Funds and Related Loans
Sep 29 15
The Financial Industry Regulatory Authority (FINRA) announced that it has censured and fined UBS Financial Services Incorporated of Puerto Rico (UBS PR) $7.5 million for supervisory failures related to the suitability of transactions in Puerto Rican closed-end fund (CEF) shares. In addition, FINRA ordered UBS PR to pay approximately $11 million in restitution to 165 customers who were forced to realize losses on their CEF positions. FINRA found that for more than four years, UBS PR failed to monitor the combination of leverage and concentration levels in customer accounts to ensure that the transactions were suitable given the customers’ risk objectives and profiles. The firm failed to implement a reasonably designed system to identify and prevent unsuitable transactions in light of the unique Puerto Rican economy, in which retail customers typically maintained high levels of concentration in Puerto Rican assets and often used those highly concentrated accounts as collateral for cash loans. Despite UBS PR’s knowledge of these common practices, it failed to adequately monitor concentration and leverage levels to identify whether certain customers’ CEF transactions were suitable in light of the increased risks in their existing portfolio. In this case, UBS PR solicited certain customers to open lines of credit (LOCs) collateralized by their securities accounts. If the customer’s account value fell below the required collateral level, the customer received a “maintenance call” and was required to deposit additional assets or liquidate securities to meet the call. Where an LOC is collateralized by a diversified account, a customer may have a variety of securities that s/he can liquidate to meet a maintenance call. However, the risk of investor loss is increased when an LOC is collateralized by a highly concentrated account – and due to the unique benefits of Puerto Rican assets for Puerto Rican residents, UBS PR customer accounts were typically highly concentrated in CEF shares. The market events of Aug. 2013 caused the value of many CEF shares to plummet, and customers who received maintenance calls were forced to realize substantial losses in order to meet them.
Similar Private Companies By Industry
Recent Private Companies Transactions
|No transactions available in the past 12 months.|
The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking
Most Searched Private Companies
Sponsored Financial Commentaries