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View the article online at http://citywire.co.uk/wealth-manager/article/a658326

UBS fined £9.45m for failings in sale of AIG fund

by Emma Dunkley on Feb 12, 2013 at 10:54

Tracey McDermott, director of enforcement and financial crime, said in a statement: ‘Firms such as UBS should be under no illusion about the standards expected of them. UBS’s conduct fell far short of what its customers deserved and what the FSA requires. 

‘It failed to ensure it understood the product it was selling, failed to recommend it to the right customers and failed to take effective action in the financial crisis when the problems with the Fund came to the fore.’

She added: ‘We have made our expectations in relation to the wealth management industry clear. UBS has paid the price for its failures and we will continue to take strong action against firms who fail to do the right thing for their customers.’

UBS agreed to settle at an early stage entitling it to a 30% discount on its fine, which would otherwise have been £13.5 million.

The news comes shortly after Sir Keith Mills reached a settlement with Coutts over the private bank's sale of the AIG fund.

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1 comment so far. Why not have your say?

Reg

Feb 13, 2013 at 07:58

Who next ?? All the Private Banks sold on the same basis - ie ' liquidity management '. Hopefully the FSA have the likes of Barclays and HSBC in their sights as well as the large Accountancy firms such as Deloitte.

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