UBS Financial Services Inc has agreed to pay a fine of $500,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2017 to at least December 2018, UBS-FS failed to establish and maintain a supervisory system, including written procedures, reasonably designed to assess whether its registered representatives recommended to retail customers short-term trades of syndicate preferred stocks that were unsuitable.
At least 22 UBS-FS representatives or representative teams recommended that UBS-FS’s retail customers purchase syndicate preferred stocks and then sell the positions within 180 days, causing the customers to sustain losses on these transactions while the representatives collected concessions and commissions.
Based on the above conduct, UBS-FS violated FINRA…
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