(Reuters) – UBS Group AG's brokerage arm agreed to pay $ 8 million to settle fees charged by the US securities regulator due to errors in the sale of a volatility-linked, exchange-traded product, the regulator said Monday.
The US Securities and Exchange Commission accused UBS of not restricting its advisers from selling a complex product, which was not suitable for extended periods, for two years beginning in January 2016.
The settlement is the sixth the enforcement measure arising from an agency initiative targeting investment advisers' sales of certain exchange-traded products to retail investors. product in customer accounts for long periods that resulted in "meaningful losses."
A spokesman for UBS, who neither denied nor acknowledged the SEC's allegations,'s help the company was "pleased to have resolved this issue."
"As acknowledged by the SEC, UBS proactively reviewed and removed the product from its program before being contacted by the SEC," the spokesman said in an email. [1
"Consulting firms need to protect clients from inappropriate investments in complex financial products," said Daniel Michael, head of the SEC's unit division for complex financial products.
"We will continue to review corporate policies and procedures related to these hazardous products," he said.