WASHINGTON – UBS Financial Services, Inc. of Puerto Rico agreed to pay $34 million to settle charges by FINRA and the SEC that it failed to supervise the suitability of transactions in Puerto Rican closed-end fund shares, as well as a former broker who had customers invest in those CEFs using money borrowed from an affiliated bank.
The SEC ordered UBS to pay the SEC $15 million in penalties, disgorgement of ill-gotten gains, plus interest. The firm will pay $7.5 million in fines to FINRA, as well as $11 million in restitution to 165 customers who suffered losses in closed-end fund positions.
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