UBS controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile10 entries
2023
Archegos-related enforcement and litigation
UBS faced regulatory and legal consequences associated with Archegos Capital Management, including obligations inherited or addressed through its acquisition of Credit Suisse.
2021
Hong Kong regulator fines UBS for regulatory breaches
Fine or penalty
Hong Kong’s Securities and Futures Commission fined UBS and UBS Securities Asia for regulatory breaches, including failures involving disclosure of financial interests, structured-note risk disclosures, recording order instructions and client authorisations. The SFC said UBS failed to act with due skill and care. UBS said it had strengthened internal controls and systems, and offered to compensate affected clients regarding structured-note disclosures.
Company response
Refund or compensation — UBS
The bank has offered to compensate the clients affected.
Remediation — UBS
UBS has taken remedial actions to strengthen its internal controls and systems upon identifying the breaches, and cooperated with the SFC in resolving the issues, said the SFC.
Source excerpt
The Hong Kong Securities and Futures Commission (SFC) has fined UBS and UBS Securities Asia HK$9.8m (£900,000, $1.26m €1.06m) and HK$1.75m, respectively.
This was for failing to disclose financial interests in some Hong Kong-listed companies covered in research reports between 2004 and 2018.
The SFC considers that the bank failed to act with due skill and care and put in place adequate systems and controls to ensure compliance with the applicable regulatory requirements,
2021
UBS settles SEC action over ETP sales compliance failures
Settlement
The SEC filed a settled action against UBS Financial Services over compliance failures related to sales of a volatility-linked ETP. UBS agreed to a censure and to pay disgorgement, interest and an $8 million civil penalty, without admitting or denying the SEC’s findings.
Source excerpt
The Securities and Exchange Commission (SEC) filed a settled action against UBS Financial Services for compliance failures relating to the sale of a volatility-linked exchange-traded product (ETP).
Without admitting or denying the SEC’s findings, UBS agreed to a censure and to pay disgorgement and prejudgment interest of $112,274 plus a civil penalty of $8m (£5.9m, €6.8m), which will be distributed to affected investors.
2021
Trader sues UBS over alleged workplace-related mental-health harm
Lawsuit filed
UBS trader Simon Rope sued the bank, alleging that a toxic London work environment and punishing workload caused his anxiety disorder and inability to work. UBS denied negligence and breaching its duty of care; the source says the court documents were filed in February but does not specify the year.
Company response
Denial — UBS
UBS has denied negligence and breaching its duty of care to Rope.
Source excerpt
A UBS trader sued his employer over allegations the “toxic” London work environment and “punishing workload” caused his mental health to deteriorate so far he was no longer able to work.
UBS has denied negligence and breaching its duty of care to Rope.
An exceptionally large number of companies for such a small team to cover,” they said in documents filed at the High Court in February.
2020
UBS agrees to pay more than $10 million to resolve SEC charges
Settlement
UBS Financial Services agreed to pay more than $10 million to resolve charges that it circumvented retail-investor priority in certain municipal bond offerings. The SEC said UBS violated retail order period restrictions by allocating bonds intended for retail customers to customers who resold them to broker-dealers at a profit.
Source excerpt
UBS Financial Services has agreed to pay more than $10 million to resolve charges that it circumvented the priority given to retail investors in certain municipal bond offerings, the Securities and Exchange Commission announced Monday.
The SEC’s order, between August 2012 and June 2016, “UBS violated retail order period restrictions in new issue municipal bond offerings it distributed by allocating bonds intended for retail customers to certain customers that were known in the bond industry as ‘flippers.’ The flippers obtained allocations of negotiated new issue bonds from UBS and then immediately resold or ‘flipped’ the bonds to other broker-dealers at a profit.”
The regulator revealed that UBS Financial Services “circumvented” the priority given to retail investors when it comes to certain types of municipal bond offerings.
2019
MAS fines UBS for deceptive pricing practices
Fine or penalty
The Monetary Authority of Singapore imposed a S$11.2 million fine on UBS after finding that its client advisors deceived customers about prices for over-the-counter bonds and structured products. UBS admitted liability and paid the civil penalty.
Company response
Refund or compensation — UBS
UBS will also compensate all affected clients managed by UBS’ Singapore branch during the period of 2008 to 2017 as part of the penalty settlement.
Source excerpt
UBS admitted liability for its client advisors’ actions and has paid the civil penalty, the financial authority said in a press release.
Singapore has fined Swiss banking giant UBS S$11.2 million (US$8 million) after investigations showed its advisors deceived clients about prices for bonds and other financial products.
The Monetary Authority of Singapore (MAS) imposed a $11.2m fine on UBS after its client advisors’ deceived customers on the prices of transactions for over-the-counter (OTC) bonds and structured products.
2019
Hong Kong regulator fines UBS for client overcharging
Fine or penalty
Hong Kong's Securities and Futures Commission fined UBS HK$400 million after finding that the bank overcharged clients between 2008 and 2017. The regulator also said the investigation found serious internal control failures and that UBS falsified some account statements to conceal overcharges.
Hong Kong’s Securities and Futures Commission fined UBS HK$400 million after finding that the bank overcharged clients between 2008 and 2017. The regulator also said the investigation found serious internal control failures and that UBS falsified some account statements to conceal overcharges.
Company response
Refund or compensation — UBS
UBS has also agreed to repay the clients HK$200 million, the SFC said.
Source excerpt
In the statement, the SFC said UBS was also found to have falsified some account statements which were issued to financial intermediaries who were authorized to trade for the clients to “conceal the overcharges.”
HONG KONG: Swiss bank UBS was fined HK$400 million ($51.09 million) by Hong Kong’s securities regulator for overcharging up to 5,000 clients for nearly a decade, the watchdog said on Monday.
Among problems discovered were that advisors failed to disclose — or made only partial disclosure — of price changes and overcharged clients, the bank said.
2015
Foreign-exchange benchmark investigations
UBS pleaded guilty or reached related settlements with authorities in connection with foreign-exchange market conduct and benchmark-related practices.
2012
Libor manipulation case
UBS agreed to substantial penalties with multiple regulators over misconduct involving submissions and trading related to benchmark interest rates, including Libor.
2009
US offshore-tax investigation
UBS entered a US deferred prosecution agreement concerning assistance allegedly provided to some US taxpayers seeking to conceal offshore accounts and income. The matter led to penalties, disclosure of client information under an agreement with the US authorities, and extensive compliance remediation.