December 03, 2014
The State of Vermont will receive $325,000 from UBS Financial Services as the result of a recent investigation conducted by the Department of Financial Regulation. Commissioner Susan L. Donegan announced today that UBS will pay $275,000 to the general fund and $50,000 to reimburse the department for the cost of the investigation.
The investigation revealed that the firm failed to properly supervise its personnel at the South Burlington office. The department found the company violated internal policies and procedures relating to investment strategies and the opening of new accounts. Since claims filed by individual investors were settled through separate private arbitration with UBS, no restitution was ordered by DFR.
Donegan said that as a condition of the Administrative Consent Order, actions have been taken to correct the erroneous procedures ensuring that Vermonters’ accounts are more closely monitored.
“UBS has made changes to several practices and implemented a number of corrective actions that will result in improved policies and procedures,” she said, “Those remedial measures include a rigorous training program for personnel who are involved in account management.”
UBS is a Vermont licensed securities broker-dealer with offices in South Burlington, Rutland, Chester and Dorset.
Contact: Dale Schaft, Information Management Officer, 802-828-4872
Source: Department of Financial Regulation
Last Updated at: December 03, 2014 11:17:37