A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan has ordered UBS to pay an investor $1.45m for losses incurred by its Puerto Rico closed-end bond funds after finding two UBS units liable in a case that alleges securities fraud, misrepresentation and other misdeeds. UBS, in September 2015, agreed to pay almost $34 million to settle charges from the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA), Wall Street’s industry-funded watchdog, that it failed to supervise sales of the funds it sponsored to clients in the U.S. territory. The decision is the latest blow against UBS, which was accused of misleading investors about how it would manage their money when Hurricane Maria hit last year.
A Financial Industry Regulatory Authority (FINRA) arbitration panel in San Juan has ordered UBS to pay an investor $1.45m for losses incurred by its Puerto Rico closed-end bond funds after finding two UBS units liable in a case that alleges securities fraud, misrepresentation and other misdeeds. The decision is the latest blow against UBS, which was accused of misleading investors about how it would manage their money when Hurricane Maria hit last year.