UBS Fined Over Securities Pricing
Swiss bank UBS has agreed to pay a $300,000 (SFr285,000) fine to settle charges of failing to price securities correctly in the United States.
The US Securities and Exchange Commission charged UBS’s Global Asset Management arm on Tuesday with failing to properly price securities in three mutual funds that it managed, resulting in a misstatement to investors of the net asset values of those funds.
The SEC determined that during a two-week period the UBS investment arm did not follow the mutual funds’ fair valuation procedures in pricing certain illiquid fixed-income securities.
Merri Jo Gillette, of the SEC’s Chicago regional office, said in a statement that UBS Global Asset Management “failed to fulfill one of its core delegated responsibilities on behalf of mutual funds it advises – to price securities in the mutual funds accurately”.
She added that “this misconduct was brought to light quickly, so the duration was short and the harm to investors minimal”.
UBS settled the charges without admitting or denying the SEC’s findings.