UK regulator fines UBS over high risk investments

Swiss bank

Britain's financial regulator has fined Swiss bank UBS 9.45 million pounds ($14.8 million) for exposing its customers to high-risk investments and for failing to deal properly with complaints that followed.

The Financial Services Authority says UBS AG placed some 2,000 customers in a fund called the AIG Enhanced Variable Rate Fund. When AIG ran into trouble in 2008, as a consequence of the global credit crunch and the collapse of investment bank Lehman Brothers, there was a run on the fund.

The FSA says that UBS failed to carry out adequate due diligence, ``so UBS had an inadequate understanding of the nature of the fund's assets and the consequent risks.''

Tracey McDermott, director of enforcement and financial crime, says UBS' conduct ``fell far short of what its customers deserved.'

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus