NEWARK – UBS Financial Services, Inc. has agreed to pay $98,184.84 in civil penalties to the New Jersey Bureau of Securities, to settle violations that resulted from unregistered personnel accepting orders for the purchase and sale of securities.
UBS employed “client services associates” who accepted orders from clients without being registered with the Bureau. UBS also failed to adequately supervise the client services associates who accepted client orders.
“The conduct our Bureau investigators uncovered violated the state’s Uniform Securities Act, our primary law for protecting investors and their hard-earned money,’ Acting Attorney General John J. Hoffman said. “These violations exposed investors to unnecessary risk and such conduct will not be tolerated, nor go unpunished.”
UBS settled the multi-state investigation, coordinated by the North American Securities Administrators Association (“NASAA”) and led by the New Jersey Bureau of Securities, by agreeing to pay up to a total of $4.58 million in civil penalties among the 50 states, District of Columbia, Puerto Rico and the U.S. Virgin Islands.
UBS entered into the settlement with the Bureau without admitting or denying the findings of fact and conclusions of law. UBS revised its client transaction processes and supervisory procedures to address the violations.
“Financial firms must take reasonable measures to supervise their personnel,” said Abbe R. Tiger, Chief of the New Jersey Bureau of Securities. “Over a six year period, UBS failed to recognize a flaw in its order entry systems that allowed unregistered persons to accept customer orders in violation of the Uniform Securities Law.”
The Bureau can assist investors in determining whether those selling securities, as well as securities offered for sale, are registered or are exempt from registration. The Bureau of Securities can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600. The Bureau’s website is located at www.njsecurities.gov .
Amy Kopleton, Deputy Bureau Chief, and Investigators Peter C. Cole and Patrick Uket conducted the UBS investigation on behalf of the Bureau.
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