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Administration June 1, 2007
UBS Settles Timing Allegations with Two States, NYSE
January 18, 2006 (PLANSPONSOR.com) - UBS Financial
Services has signed onto settlements of charges its lax
supervision didn't prevent market timing transactions and has
agreed to pay a total of $54 million.
Reported by Fred Schneyer
A UBS Web site statement said the settlement includes the states of New Jersey and Connecticut as well as the New York Stock Exchange.
Of the $54 million, UBS said $18 million will fund an investor restitution effort while $16 million will pay for an investor education campaign. The allegations were that the abusive fund trading took place between January 2000 and late February 2002.
“The practice of market timing has a detrimental effect on Connecticut’s investors and the mutual funds in which they have invested their hard earned money,” said Connecticut Banking Commissioner John Burke, in a news release from his office.
“Proper supervision of agents is critical in maintaining investor confidence.”
The settlement with Connecticut was worth $5.5 million, Burke said in his statement.